A financial statement that consists of a three-part summary of a company's assets, liabilities, and ownership equity at a particular instance in time. It is intended to show the financial condition of a company at that time.
The balance sheet states the assets on one side and the liabilities and equity, together, on the other side. Both sides must balance out with each other.
Definition from Nolo’s Plain-English Law Dictionary
A financial statement listing a businesss assets (what it owns), liabilities (what it owes), and net worth (the difference between the assets and liabilities) at a particular point in time. It is usually prepared each month, quarter of a year, annually, or upon sale of the business. It is intended to show the overall condition of the business.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:11 pm