Balance Sheet Definition
A balance sheet is a financial statement that is a “snapshot” of a company’s financial status at one point in time, displayed in two columns of figures with matching totals.
The balance sheet is a statement of a business’s stability and overall financial condition. It lists a business’s assets, liabilities, and equity, and always uses the formula: Assets = Liabilities + Equity. A balance sheet always follows the same formula, but may include different accounts/details depending on the type of business. Important financial information about a business is discovered by comparing its balance sheets over time.