Balance Sheet – is a key financial document which helps users to assess the financial health and performance of a business.
It shows a summary of everything the company owns (Assets), all the debts the company has to payout (Liabilities) and the amount of money that has been invested in the organisation by the owners (Capital). The balance sheet is a financial statement about a business at a specific point in time.
For compete definitions of the terms Assets, Liabilities and Capital please see the link ‘Hot Tips and Links’ and select the download ‘Finance Definitions’.
If you are unsure why the Balance Sheet always balances when reviewing an organisation’s accounts (and the importance of this key fact), please call for more details.
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