Balance sheet
Also called: statement of financial position
A statement of what a company owns, what it owes and what belongs to its shareholders, on a single date.
The balance sheet lists assets, liabilities and equity at the end of a reporting period, each split into current and non-current items. It always balances, because every asset is financed either by liabilities or by equity.
It is a snapshot: the same company can look quite different a few months later.
Example
A company with assets of ₹950 crore, liabilities of ₹450 crore and equity of ₹500 crore satisfies 950 = 450 + 500.
Learn more in these lessons
- The balance sheetHow do you read a company's balance sheet?
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