Definitions for balance sheet
This page provides all possible meanings and translations of the word balance sheet
a record of the financial situation of an institution on a particular date by listing its assets and the claims against those assets
: A summary of a person's or organization's assets, liabilities and equity as of a specific date.
In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, a business partnership, a corporation or other business organization, such as an LLC or an LLP. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a "snapshot of a company's financial condition". Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business' calendar year. A standard company balance sheet has three parts: assets, liabilities and ownership equity. The main categories of assets are usually listed first, and typically in order of liquidity. Assets are followed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assets or the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities. Another way to look at the same equation is that assets equals liabilities plus owner's equity. Looking at the equation in this way shows how assets were financed: either by borrowing money or by using the owner's money. Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections "balancing."
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"balance sheet." Definitions.net. STANDS4 LLC, 2015. Web. 3 Aug. 2015. <http://www.definitions.net/definition/balance sheet>.