Balance Sheet

The Balance Sheet is a financial statement that provides a snapshot of a company's assets, liabilities, and equity at a specific point in time. It's like a photograph of the company's financial health on a particular date.

This statement is essential for understanding a company's financial position and its ability to meet its obligations. By analyzing the balance sheet, you can gain insights into:

• Assets: What resources does the company own, such as cash, accounts receivable, and equipment?
• Liabilities: What debts does the company owe to others, such as accounts payable and loans?
• Equity: What is the residual value of the company's assets after deducting liabilities?

A well-prepared balance sheet can help businesses assess their liquidity, solvency, and overall financial stability.