Balance Sheet

Formal

A photograph of the financial position of a business at a single point in time. A list of all the assets and liabilities at a single point in time, used by investors, staff, creditors to assess the financial strength of a business.

Real-world Example

At financial year-end, a manufacturer's balance sheet shows $2M in assets (cash, inventory, equipment) against $800k in liabilities (loans, payables), leaving $1.2M in shareholders' equity.