Balance Sheet


The balance sheet provides a summary of a company's assets, liabilities, and stockholders' equity as a snapshot in time. The date at the top of the balance sheet indicates when the snapshot was taken, which is generally the end of the financial year. It identifies how assets are financed, either with liabilities, such as debt, or stockholders' equity, such as retained earnings and additional paid-in capital. Assets are listed on the balance sheet in order of liquidity. Liabilities are listed in the order in which they will be paid.

The Balance Sheet Formula

Assets = ( Liabilities + Owner’s Equity )