Definition of Balance Sheet
A balance sheet is a list of a company’s liabilities, owner’s equity and assets that give a snapshot of the company’s financial position and standing. It is among the three core financial statements of a business. Statement of cash flows and income statement are the other two core financial statements.
A balance sheet of a company is used to evaluate the business. A balance sheet includes the assets on one side of the column and liabilities + owner’s equity on the other side of the column. The balance sheet contains two columns.
The assets and liabilities are classified with their type so that they can give more useful and comprehensive information about the company’s financial standings.