The balance sheet is a financial report that represents a moment in time. It could be today, or the beginning of the month, quarter, or year.
The balance sheet has a left side and a right side. The total of the items on the left and the total of the items on the right must be equal, or in balance. The left side contains all the valuable assets in the business. The right side is divided into a top and bottom. The top right is the liabilities, or amounts the business owes to other people. The bottom right is equity, or the amount of value that is in the business.
See all finance reports.