Balance sheet definition. The balance sheet is based on the fundamental equation. The balance sheet is the most important of the three main financial statements used to illustrate the financial health of a business. A balance sheet is a written statement of the amount of money and property that a company or person has including amounts of money that are owed or are owing.
What is a balance sheet. A quantitative summary of a companys financial condition at a specific point in time including assets liabilities and net worth. A statement of a companys assets liabilities and stockholder equity at a given period of time such as the end of a quarter or year.
Net income equals revenue minus expenses for the period. The company needed a strong balance sheet. Balance sheet includes assets on one side and liabilities on the other.
It can also sometimes be referred to as a statement of net worth or a statement of financial position. Assets on the left and financing which itself has two parts liabilities and ownership equity on the right. A tabular statement of both sides of a set of accounts in which the debit and credit balances add up as equal.
A balance sheet is a record of what a company has and how it has come to have it. A balance sheet reports a companys assets liabilities and shareholders equity at a specific point in time and provides a basis for computing rates of return and evaluating its capital structure. The main categories of assets are usually listed first and typically in order of liquidity.
Assets are followed by the liabilities. The income statement which shows net income for a specific period of time such as a month quarter or year. With income statement and cash flow statement it comprises the set of documents indispensable in running a business.
A standard company balance sheet has two sides. Balance sheet is the financial statement of a company which includes assets liabilities equity capital total debt etc. At a point in time.
Assets liabilities equity.