Balance Sheet

A balance sheet is a financial statement that shows what a company owns (assets), what it owes (liabilities), and the shareholders’ equity at a specific point in time. It provides a clear snapshot of a business’s financial position, listing total assets on one side and the combined total of liabilities and equity on the other to ensure both sides balance. Balance sheets are a standard part of financial reporting, used by investors to gauge a company’s value and financial health, and by company management to guide business decisions and assess capital structure.