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Glossary Term: BALANCE SHEET

Definition(s) for BALANCE SHEET:


1. ) The financial statement of a business or institution that lists the assets (cash, inventory, factories, equipment and accounts receivable), liabilities (short term and long term debts and accounts payable) and owners' investment as of a specific date. The difference between assets and liabilities is known as shareholder's equity or book value.

2. ) A condensed financial statement showing the nature and amount of a company's assets, liabilities and capital on a given date. In dollar amounts the balance sheet shows that the company owned, what it owed, and the ownership interest in the company of its stockholders.

3. ) A financial statement showing a snapshot of the assets, liabilities and net worth of an individual or organization on a given date

4. ) One of the main components of a company’s financial statements, the balance sheet provides an overview of the company’s assets (what it owns) and liabilities (what it owes) at the end of a financial year.

5. ) It represents a snapshot of the company's financial position as at a point in time, which is usually the financial year end.



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