Balance sheet transactions refer to all the financial activities that are affected by the company’s operations. These activities usually include recording of assets, liabilities, income, and expenses. Assets are typically things owned by a company, such as cash, inventory, equipment, buildings, investments, etc., and Liabilities are obligations to outside entities; these are usually debt and accounts payable. Income is any money coming into the business, such as sales or other revenues, while Expenses are any payments going out of the business, such as payroll or advertising. The difference between the two – Assets minus Liabilities – is known as equity, or Net Worth.