What is a 'Balance Sheet'?

A balance sheet reports a company's assets, liabilities and shareholders' equity at a specific point in time. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Term of the Day Balance Sheet A balance sheet reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure. It is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders. Breaking it Down: The balance sheet adheres to the following equation, where assets on one side, and liabilities plus shareholders' equity on the... 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. To lower their risk, investors use a variety of leverage ratios - including the debt, debt-to-equity and interest coverage ratios - to identify firms with unhealthy debt levels. 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, long-term liabilities are financial obligations of a company that become due more than one year. Read More » Long-Term Assets Long-term assets are the value of a company's property, equipment and other capital assets, minus depreciation. Read More » Shareholder Equity Ratio The shareholder equity ratio is used to help determine how much shareholders would receive in the event of a company-wide liquidation. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy