Definition of Balance Sheet | Business Balance Sheet

Accounting Definitions

Browse terms alphabetically

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Balance Sheet Definition

Term 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.

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.

Related Articles
What Is a Balance Sheet?
How Do You Determine a Profit Margin?
What Is Equity in a Business?

Get Started
Try it free

Sign up today for a free, no-obligation 30-day trial.

Try It Free for 30 Days
Get Started
Take a demo

Kick the tires with a free self-guided demo.

Take a Self-Guided Demo