What do people mean when they say “balance sheet”? - Seedly
 

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Asked by Anonymous

Asked on 12 Nov 2018

What do people mean when they say “balance sheet”?

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Good Day Every Day
Good Day Every Day
Level 7. Grand Master
Updated on 07 Jun 2019

The balance sheet displays the company’s total assets, and how these assets are financed, through either debt or equity. It can also sometimes be referred to as a statement of net worth, or a statement of financial position. The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity

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Question Poster

30 Nov 2018

Isn’t Assets = Equity - Liability
Good Day Every Day
Good Day Every Day

30 Nov 2018

No. Assets = Liabilities + Equity
Gabriel Lee
Gabriel Lee
Level 8. Wizard
Answered on 13 Nov 2018

Balance sheet is also known as a Statement of Financial Position, which lists the amounts for assets, liabilities, and equity at a point in time of a business. It sets out the financial position of a business at a particular point in time and also reports on the investing and financing activities of the business.

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Lok Yang Teng
Lok Yang Teng
Level 8. Wizard
Updated on 12 Nov 2018

It like a statement of account for the business, detailing money flow in a period of time. "It is 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." - Google

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