Balance sheet definition. The company needed a strong balance sheet. A quantitative summary of a companys financial condition at a specific point in time including assets liabilities and net worth. The balance sheet displays the companys total assets and how these assets are financed through either debt or equity.
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. With income statement and cash flow statement it comprises the set of documents indispensable in running a business. The balance sheet is the most important of the three main financial statements used to illustrate the financial health of a business.
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. Assets are followed by the liabilities. It is a financial statement that provides a snapshot of what a company owns and owes as well as the amount invested by shareholders.
Balance sheet data is based on a fundamental accounting equation assets liabilities owners equity and is classified under subheadings such as current assets fixed assets current liabilities long term liabilities. A statement of the financial position of a business on a specified date. It can also sometimes be referred to as a statement of net worth or a statement of financial position.
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 balance sheet is based on the fundamental equation. What is a balance sheet.
The main categories of assets are usually listed first and typically in order of liquidity. The income statement which shows net income for a specific period of time such as a month quarter or year. At a point in time.
Net income equals revenue minus expenses for the period. A tabular statement of both sides of a set of accounts in which the debit and credit balances add up as equal. Assets liabilities equity.
Balance sheet is the financial statement of a company which includes assets liabilities equity capital total debt etc.