Balance Sheet

What is a Balance Sheet?

A balance sheet is a fundamental financial statement that provides a snapshot of a company’s financial position at a specific point in time, typically at the end of a fiscal period, such as a quarter or a year. It presents a clear and concise summary of a company’s assets, liabilities, and shareholders’ equity. The balance sheet adheres to the accounting equation, where assets equal liabilities plus shareholders’ equity, illustrating how a company’s resources (assets) are financed, whether through debt (liabilities) or owner’s equity (shareholders’ equity).

This financial statement is a critical tool for investors, creditors, and management as it offers insights into a company’s financial health, liquidity, and overall stability, aiding in informed decision-making and financial analysis.

Oxford Languages

a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.


In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity. 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”. It is the summary of each and every financial statement of an organization.