MANAGEMENT

Detailed explanation-1: -A balance sheet states a business’s assets, liabilities, and owner’s equity at a specific point in time. They offer a snapshot of what your business owns and what it owes, as well as the amount invested by its owners, reported on a single day.

Detailed explanation-2: -Assets are what a business owns and liabilities are what a business owes. Both are listed on a company’s balance sheet, a financial statement that shows a company’s financial health. Assets minus liabilities equals equity, or an owner’s net worth.

Detailed explanation-3: -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-4: -Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how much money a company made and spent over a period of time.

Detailed explanation-5: -Statement #2: The balance sheet In other words, the balance sheet shows what a company owns (its assets) and owes (its liabilities) and the difference between the two (stockholders’ equity).