What is a balance sheet of the financial statements?

Question

Accepted Answer

A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

It provides a snapshot of a company's financial position.
Assets are listed on the left side, while liabilities and equity are on the right side.
The balance sheet follows the accounting equation: Assets = Liabilities + Shareholders' Equity.
It helps investors and analysts assess the financial health and stability of a company.
Example: If a company has $100,000 in assets, $60,000 in liabilities, and $40,000 in shareholders' equity, the balance sheet would show: Assets $100,000 = Liabilities $60,000 + Shareholders' Equity $40,000.

Accepted Answer

Balance sheet is a financial statements that contains details of a company assets and liabilities at a specific point in time.

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