WordValebalance sheet
a statement of what a company owns and owes
In more detail
1. (noun) a financial statement that shows what a company owns (assets), what it owes (liabilities), and the difference between them (equity) at a particular point in time
Examples
- 1. The company's balance sheet shows they have $5 million in assets and $2 million in liabilities.
How to use balance sheet
A balance sheet is a standard accounting document used in formal financial reporting, typically prepared at the end of a fiscal period. It provides a snapshot of a company's financial position at a specific date, distinguishing it from an income statement which shows performance over a period. The term is used primarily in business, finance, and accounting contexts.
Common phrases
- balance sheet analysis
- prepare a balance sheet
- balance sheet total
- balance sheet items
- consolidated balance sheet
Synonyms
financial statement · statement of financial position · accounting statement
A common mistake
Learners sometimes confuse a balance sheet with an income statement; remember that a balance sheet shows financial position at a single point in time, while an income statement shows financial performance over a period.
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