Real Estate Terms Glossary
What is a Balance Sheet?
A balance sheet is the financial report of a firm’s total assets, liabilities, and owner’s equity. Just like a cash flow statement and income statement, it is another fundamental component. At its core, a balance sheet allows businesses to evaluate their financial position for one or more fiscal years and make a comparative analysis.
The main equation of the balance sheet revolves around assets = liabilities + equity .
Balance Sheet Examples
Examples of Balance Sheet include:
- Example 1: Horizontal balance sheets
- Example 2: Vertical balance sheets
- Example 3: Classified balance sheets
- Example 4: unclassified balance sheets
Here is a comprehensive article about the balance sheet.