What is a 'Balance Sheet'?

A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by shareholders.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Balance Sheet A balance sheet is a financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by shareholders. Breaking it Down: The balance sheet gets its name from the fact that the two sides of the equation above – assets on the one side and... Read More Related to "Balance Sheet" Evaluating a Company's Capital Structure Learn to use the composition of debt and equity to evaluate balance sheet strength. Read More How dividends affect stockholder equity Find out how dividends affect a company's stockholder equity and how the accounting process changes based on the type of dividend issued. Read More Understanding Leverage Ratios Large amounts of debt can cause businesses to become less competitive and, in some cases, lead to default. Read More Related Definitions Other Long-Term Liabilities Other long-term liabilities are a balance sheet item that lumps together obligations not due within 12 months. Read More Long-Term Liabilities In accounting, a section of the balance sheet that lists obligations of the company that become due more than one year into the future. Read More Long-Term Assets The value of a company's property, equipment and other capital assets, minus depreciation. Read More Shareholder Equity Ratio A ratio used to help determine how much shareholders would receive in the event of a company-wide liquidation. Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: