Finance glossary
Balance Sheet
Definition
A snapshot of a company assets, liabilities, and equity at a point in time.
The balance sheet shows what a company owns and owes on a specific date, following the equation assets equal liabilities plus equity. It reveals financial position, liquidity, and leverage, and is one of the three core financial statements.
In a sentence
The balance sheet showed the firm owned $10 million in assets against $4 million in liabilities.
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