A balance sheet or statement of financial position is the summary of the balances of an organization (or individual) at a particular point in time.
It is best understood as a financial snapshot of an accounting entity at a specific time and date.
It's main sections are: assets, liabilities and equity.
Assets are everything that a company owns that has future economic value. Assets can include: cash, investments, accounts receivable, supplies, buildings, inventory, equipment, etc.
Liabilities include the company’s obligations and financial debt: all accounts payable, loans, deferreed revenues, accounts payable, accrued expenses, mortgages, etc.
Shareholder’s equity is part of a company’s liabilities and includes the funds contributed by the owners plus the retained earnings.
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