What is balance sheet?

A balance sheet shows a business’s assets, liabilities and equity at a date; assets always equal liabilities plus equity. It shows what the business owns and owes at one moment, and complements the income statement, which explains how equity changed over the period.

Accounting

Balance sheet

A balance sheet shows a business’s assets, liabilities and equity at a date; assets always equal liabilities plus equity.

Explained

It shows what the business owns and owes at one moment, and complements the income statement, which explains how equity changed over the period.

Related terms

Income statementAn income statement shows a business’s revenue and expenses over a period; the difference is the net profit or loss.
Accounts receivableAccounts receivable are the amounts customers owe a business for invoices issued but not yet collected.

All terms