Balance Sheet
In one sentenceA snapshot of what the business owns (assets), owes (liabilities) and the owners' stake (equity) on a given date.
What it means
The balance sheet always balances: assets = liabilities + equity. Together with the P&L and Cash Flow statement, it gives the full financial picture.
How to use it
- Lenders and buyers will look at it: keep it clean and up to date with your bookkeeper.
FormulaAssets = liabilities + equity
Related terms
P&L Cash Flow Accounts Receivable & Payable
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