Balance sheet

A balance sheet is an essential financial statement that provides a snapshot of a company's financial position at a specific point in time. It includes a detailed listing of the company's assets, liabilities, and shareholders' equity. Assets represent everything the company owns that has value, such as cash, inventory, and property. Liabilities are the company's financial obligations, including loans, accounts payable, and mortgages. Shareholders' equity is the residual interest in the company's assets after subtracting liabilities. Understanding the balance sheet is crucial for investors, creditors, and management to assess the financial health, stability, and potential growth of the business.