A balance sheet is a financial statement that shows a company’s assets, liabilities, and shareholders’ equity at a given moment in time, as well as providing a basis for calculating rates of return and assessing its capital structure. It’s a financial statement that shows what a business owns and owes, as well as how much money shareholders have invested.
When doing fundamental analysis or generating financial ratios, the balance sheet is utilized with other significant financial documents such as the income statement and statement of cash flows.
The balance sheet is a snapshot of a company’s financial situation (what it owns and owes) at the time of publishing.
The balance sheet reflects the cumulative balance of all related accounts as of the current date. It carries all transactions in perpetuity as compared to the income statement which only reflects activity for a year at a time.
Balance sheet is a statement that summarise financial position of company of at point in time. Assets, liabilities, equity capital, debt of company included in balance sheet. Included in assets side —
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Fixed assets
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Investment
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Current assets
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fictitious assets