A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time.
 | | Term of the Day | Words to Know | | |  | | Balance Sheet | A balance sheet is a financial statement that 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.
It is used alongside other important financial statements such as the income statement and statement of cash flows in conducting fundamental analysis or calculating financial ratios. | | Read More » | | Related to "Balance Sheet" | | | | Reading the Balance Sheet | | Learn about the components of a company balance sheet - aka the statement of financial position - and how it relates to other financial statements. | | Read More » | | | Capital Structure | | Capital structure is how a firm funds its operations and growth, combining long-term debt, specific short-term debt, common equity and preferred equity. | | Read More » | | | Fixed Asset | | A fixed asset is a long-term tangible asset that a firm owns and uses to produce income, and it is not expected to be used or sold within a year. | | Read More » | | | Long-Term Debt | | Long-term debt is debt that matures in more than one year. Long-term debt is usually viewed differently from the perspective of the issuer vs. the investor. | | Read More » | | | Debt-To-Equity Ratio | | The debt-to-equity (D/E) ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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