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.
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About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.