Balance sheet
Definition
A financial statement showing what the corporation owns (assets), what it owes (liabilities), and the owner's residual equity at a point in time.
Long reference
Handbook
Balance Sheet
Citations, procedures, and worked examples for balance sheet.
Related terms
Income statement
A financial statement summarizing revenue, expenses, and net income over a period. Also called the Profit and Loss statement.
Accounting equation
Assets = Liabilities + Equity. The identity every balance sheet must satisfy.
Trial balance
A point-in-time listing of every account balance. Used to confirm total debits equal total credits before preparing financial statements.