BALANCE SHEET - What does this mean to you? A condensed - TopicsExpress

BALANCE SHEET - What does this mean to you? A condensed statement that shows the financial position of an entity on a specified date (usually the last day of an accounting period). Among other items of information, a balance sheet states (1) what assets the entity owns, (2) how it paid for them, (3) what it owes (its liabilities), and (4) what is the amount left after satisfying the liabilities. Balance sheet data is based on a fundamental accounting equation (assets = liabilities + owners equity), and is classified under subheadings such as current assets, fixed assets, current liabilities, Long-term Liabilities. With income statement and cash flow statement, it comprises the set of documents indispensable in running a business. Usage Example; Before filing taxes, the accountant must look at the companys balance sheet to ensure that all assets, liabilities, and owners equity have been accounted for.

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