What is Balance Sheet?

A definition of Balance Sheet

“A balance sheet is a financial statement that provides a snapshot of a company’s financial condition at a specific point in time, showing assets, liabilities, and shareholders’ equity.”

Balance Sheet in Business Glossary - What is a Balance Sheet?

Business Glossary > What is Balance Sheet?


Examples of Balance Sheet in a Sentence:

The balance sheet lists all of the company’s assets and liabilities.

Our accountant prepares the balance sheet every quarter.

Investors examine the balance sheet to determine the financial health of a business.

Why is Balance Sheet Important in Business?

A balance sheet is crucial for understanding the financial health and stability of a business, providing essential information for stakeholders such as investors, creditors, and management. It helps in assessing liquidity, risk, and return on investment.

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Associated Terms

Here are some associated business terms and synonyms for “Balance Sheet”:

  • Statement of Financial Position
  • Asset and Liability Statement
  • Financial Snapshot

Apple Inc. Balance Sheet

Apple Inc.’s balance sheet shows its strong financial position with substantial assets, including cash reserves and significant equity. It illustrates Apple’s ability to invest in research, development and expansion.

Final Notes on Balance Sheet

When analyzing a balance sheet, focus on understanding the relationship between assets, liabilities, and equity to assess financial health.

Pay attention to trends over time to predict future performance.


This has been a definition of Balance Sheet meaning.

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