What is a balance sheet used for?

Balance sheets can be used with other important financial statements to conduct fundamental analysis or calculate financial ratios. A balance sheet is a financial statement that reports a company's assets, liabilities, and shareholder equity.

What is a balance sheet in accounting?

What Is a Balance Sheet? A balance sheet is a financial statement that shows the relationship between assets, liabilities, and shareholders’ equity of a company at a specific point in time. Measuring a company’s net worth, a balance sheet shows what a company owns and how these assets are financed, either through debt or equity.

What is a balance sheet example?

Download Balance Sheet Example In this example, the imagined company had its total liabilities increase over the time period between the two balance sheets and consequently the total assets decreased. A balance sheet is a financial document that you should work on calculating regularly.