A Balance Sheet (also known as a Statement of Financial Position) is a financial statement that summarizes a company's assets, liabilities, and equity at a specific point in time. It is typically prepared at the end of the fiscal year to provide an accurate and up-to-date representation of the company's financial position. Balance Sheet items can include cash, investments, accounts receivable, inventory, property, equipment, and liabilities such as accounts payable, short-term debt, and long-term debt. Equity is usually composed of common stock, retained earnings, and other reserves. There are two types of Balance Sheets: the Single-Step Balance Sheet and the Multiple-Step Balance Sheet. The Single-Step Balance Sheet is a simple summary of the company's assets and liabilities. The Multiple-Step Balance Sheet includes more detail, such as a breakdown of current assets and liabilities, as well as a more detailed analysis of equity.
A Balance Sheet (also known as a Statement of Financial Position) is a financial statement that summarizes a company's assets, liabilities, and equity at a specific point in time. It is typically prepared at the end of the fiscal year to provide an accurate and up-to-date representation of the company's financial position. Balance Sheet items can include cash, investments, accounts receivable, inventory, property, equipment, and liabilities such as accounts payable, short-term debt, and long-term debt. Equity is usually composed of common stock, retained earnings, and other reserves. There are two types of Balance Sheets: the Single-Step Balance Sheet and the Multiple-Step Balance Sheet. The Single-Step Balance Sheet is a simple summary of the company's assets and liabilities. The Multiple-Step Balance Sheet includes more detail, such as a breakdown of current assets and liabilities, as well as a more detailed analysis of equity.
