Balance sheet

Definition

A balance sheet is a financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing its assets, liabilities, and shareholders' equity. It is essential for assessing the company's liquidity, solvency, and overall financial health.

Related terms

Assets:

Resources owned by a company that have economic value and can be converted into cash.

Liabilities:

Financial obligations or debts that the company owes to others.

Shareholders’ Equity: The residual interest in the assets of the entity after deducting liabilities, representing ownership interest in the company