The balance sheet displays a company’s financial position at a given point in time. It shows the company’s assets, liabilities, and owners’ equity. Assets are the economic resources of a firm including cash, inventory, and equipment. Liabilities are the debts of a firm. Owners’ equity is a claim by the owners on the assets of a firm.

The relationship between assets, liabilities, and equity is as follows:

Assets = Liabilities + Owners’ Equity

Definitions of the terms listed in the balance sheet:

Since it’s extremely time-consuming for you to look up all these definitions individually, I organized them on one page so you can quickly and easily reference them down the road. I streamlined the process for you so you’re able to focus on what matters most – Making decisions to capitalize on the information.
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