A financial statement showing assets, liabilities, and net worth at a specific point in time.
A balance sheet is a financial statement that provides a snapshot of a company's (or individual's) financial position at a specific date. It lists all assets (what is owned), liabilities (what is owed), and equity (net worth), with the fundamental equation: Assets = Liabilities + Equity. Balance sheets are prepared at the end of each accounting period and are one of the three core financial statements (along with income statement and cash flow statement). For individuals, a personal balance sheet tracks net worth by listing possessions and debts. Balance sheets are essential for evaluating financial health and are used by lenders, investors, and accountants.