Glossary › Balance Sheet
Balance Sheet
A snapshot of what a business owns (assets), owes (liabilities), and the owner's stake (equity) at a point in time.
The balance sheet shows a business's financial position on a specific date. It lists assets (what you own), liabilities (what you owe), and equity (what's left for the owners), and it always balances: assets = liabilities + equity.
Where the profit and loss covers a period, the balance sheet is a snapshot — a photo rather than a film.
Related terms
Explore more terms