Asked by Anonymous
Asked on 12 Nov 2018
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
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.
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