Quick Definition

A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Examples

• 1A corporation's balance sheet showing current assets like cash and inventory, fixed assets like property and equipment, and liabilities such as loans and accounts payable.
• 2A small business owner reviews their balance sheet at the end of the year to assess the financial health and prepare for tax filings.
• 3An investor analyzes the balance sheets of different companies to determine their financial stability and investment potential.
• 4A non-profit organization uses its balance sheet to ensure it has enough assets to cover its operational costs and liabilities.

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