What is a balance sheet?

Question

Accepted Answer

The balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

It provides a snapshot of a company's financial position.
Assets are listed on the left side, liabilities and shareholders' equity on the right side.
The balance sheet follows the accounting equation: Assets = Liabilities + Shareholders' Equity.
It helps investors, creditors, and analysts assess the financial health and stability of a company.
Example: If a company has $100,000 in assets, $60,000 in liabilities, and $40,000 in shareholders' equity, the balance sheet would reflect these figures.

Accepted Answer

a written statement showing the amount of money and property that a company has, and how much has been received and paid out

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