balance sheet

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A balance sheet is 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 lists the assets (movable and unmovable) on one side and the liabilities and equity, together, on the other side. Both sides must balance out with each other. A balance sheet is prepared yearly, quarterly, monthly or upon sale of a business to reflect the financial condition of the company.

[Last updated in December of 2021 by the Wex Definitions Team]