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A balance sheet is a basic financial statement that outlines the current assets and liabilities of the business. 1. Your Financial Statement Account titles may differ. 2.Your chart of accounts will likely differ in the chronological order of accounts. Account. Now that we have seen some sample balance sheets, we will describe each section of the balance sheet in detail. Confused? They are expected to last longer than a year and can depreciate over time. Depending on the complexity of your business, you may need classified balance sheets. For federal income tax purposes, only C corporations are required to complete a balance sheet as part of their annual return. Although a balance sheet can coincide with any date, it is usually prepared at the end of a reporting period, such as a month, quarter or year. The net assets (also called equity, capital, retained earnings, or fund balance) represent the sum of all annual surpluses or deficits. Usually, accounting teams create balance sheets at the end of a specific financial period, like a quarter or a year.