A Balance Sheet is defined as a financial statement that reports a company’s assets, liabilities, and shareholder equity. This is reported using the below equation.
Assets are defined as property owned by a person or company, regarded as having value and available to meet debts, and commitments.
Liabilities are defined as obligations of money or service owed to another person or entity that is not an owner of the business.
Share Holder Equity is defined as the remaining amount of assets available to shareholders after all liabilities have been paid.
