Balance Sheet Definition
A balance sheet is a financial statement that is a “snapshot” of a company’s financial status at one point in time, displayed in two columns of figures with matching totals.
Balance Sheet Extended Definition
The balance sheet is a statement of a business’s stability and overall financial condition. It lists a business’s assets, liabilities, and equity and always uses the formula: Assets = Liabilities + Equity.
A balance sheet always follows the same formula but may include different accounts/details depending on the type of business. Important financial information about a business is discovered by comparing its balance sheets over time.
Last Updated By
Andrew Freiman | Feb 28, 2023