Balance sheet
Balance sheet (alternatively known as statement of financial position; hereinafter, the Report) is a financial report, as of a particular date, that shows the amount of assets owned by a legal entity as well as the amount of claims (both liabilities and owner's equity) against these assets.
The Report shows the owners, managers, and other authorized stakeholders how much owner's equity is in the business, how many assets the business owns, and what the business owes in liabilities. The balance sheet falls in line with the accounting equation.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Balance sheet (also known as statement of financial position). A financial statement, as of a particular date, that shows the amount of assets owned by an organization as well as the amount of claims (liabilities and owner's equity) against these assets.
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
