Dictionary of all accounting terms
A balance sheet allows businesses to see their assets, liabilities and owner's or stockholders' equity for a specific point in time.
The balance sheet is one of the three main financial statements, the others being the income statement (or profit & loss statement) and the cash flow statement.
The balance sheet allows for business owners and stockholders to understand the financial position of a business at any specified date, for example, December 31.
There are 3 sections in a balance sheet:
In order to balance the balance sheet, assets equals liabilities + owner's (stockholders') equity.