Finance
Balance sheet
A balance sheet reports what a business owns, what it owes and the owners' equity at a specific point in time. Assets always equal liabilities plus equity. It is one of the three core financial statements required for lending and investment.
In plain terms: What the company owns and owes, right now.
Why it matters
The statement lenders and acquirers read first. It is also where inventory, receivables and owner loans live — the items that explain why a profitable business has no cash.
Read the full guideBookkeeping