Saturday, August 16, 2014

What is Balance Sheet

Balance sheet is a financial statement which records Assets and liabilities of the business. It shows the Financial position of the business for a specific period. The financial reports show the two sides of the financial situation (i.e) what it owns (Assets) and what is owes (Liabilities). Both the sides of a Balance sheet should be balanced. It is used by Accountant, Auditors, Investors etc for various purposes. It is prepared in quarterly, half yearly and yearly basis.

  Here is an example of Balance sheet:


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