Definition:
A Balance Sheet is a statement of the financial position of a business which states the assets, liabilities, and owners' equity at a particular point in time. In other words, the Balance Sheet illustrates your business's net worth.
All accounts in your General Ledger are categorized as an asset, a liability or equity. The relationship between them is expressed in this equation: Assets = Liabilities + Equity. The Balance Sheet is divided into these three sections.
Also Known As: Statement of financial position.
Common Misspellings: Balence sheet.
Examples: My article, The Balance Sheet, linked in the sidebar, includes a Balance Sheet template.
