ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A balance sheet reports financial information on a specific date and includes the assets, liabilities, and owner’s equity. A balance sheet reports information about the elements of the accounting equation.

Detailed explanation-2: -A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholder equity. The balance sheet is one of the three core financial statements that are used to evaluate a business. It provides a snapshot of a company’s finances (what it owns and owes) as of the date of publication.

Detailed explanation-3: -Although a balance sheet can coincide with any date, it is usually prepared at the end of a reporting period, such as a month, quarter or year.

Detailed explanation-4: -A balance sheet shows a snapshot of a company’s assets, liabilities and shareholders’ equity at the end of the reporting period.

Detailed explanation-5: -In general, net worth is the total assets owned by an individual or business less any debt obligations and other financial liabilities. On a company’s balance sheet, net worth is demonstrated through the owners’ equity section.