What is a Balance Sheet?
The balance sheet is one of the main accounting statements. Balance sheets show a financial snapshot of the business at a specific point in time, usually at the end of an accounting period.
For presentation it can be shown vertically with assets above liabilities and capital, or horizontally with assets on the left and liabilities on the right. The balance sheet must always balance and satisfy the basic accounting equation:
The balance sheet is sometimes called the ‘Statement of Financial Position’
For further information on the Balance Sheet see the Wikipedia definition.
Learn a new bookkeeping term
Random bookkeeping terms for you to discover.
- Defined Contribution Plans
- Compound Journal Entry Definition
- Gross Margin
- Days Sales in Accounts Receivable
Link to this page
Click in the box to copy and paste the balance sheet definition link to your site.