MANAGEMENT

Detailed explanation-1: -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.

Detailed explanation-2: -Statement #2: The balance sheet It’s called a balance sheet because both sides of the equation must balance: assets equal liabilities plus stockholders’ equity. The balance sheet displays: The portion of those assets financed with debt (liability) The portion of equity (retained earnings and stock shares)

Detailed explanation-3: -A balance sheet is a statement of a business’s assets, liabilities, and owner’s equity as of any given date. Typically, a balance sheet is prepared at the end of set periods (e.g., every quarter; annually). A balance sheet is comprised of two columns. The column on the left lists the assets of the company.

Detailed explanation-4: -Balance sheet Based on the basic accounting equation, or balance sheet equation [Assets = Liabilities + Equity], the balance sheet provides a snapshot of a business’s assets, liabilities, and equity.