What is an asset on a balance sheet?

An asset is a resource that is expected to provide a future benefit to its owner. In the case of businesses, assets are reported on the company's balance sheet. An asset may generate cash flow, reduce expenses, or improve sales, and it may be either tangible (like a piece of machinery) or intangible (like a copyright).

What is a financial statement?

Financial statements provide interested parties with a company's overall financial condition and profitability. Statements required by Generally Accepted Accounting Principles are the balance sheet, the income statement, and the statement of cash flows, but you'll likely see more in reports.

What information can be found on a company's balance sheet?

As noted above, you can find information about assets, liabilities, and shareholder equity on a company's balance sheet. The assets should always equal the liabilities and shareholder equity. This means that the balance sheet should always balance, hence the name.