What is a Balance Sheet?

A balance sheet is a statement or overview of a company's finances. The balance sheet is used to communicate the financial situation of the company or organization to the board of directors, investors, and others.

How to Make a Balance Sheet

  1. List the company's assets
  2. List the company's liabilities
  3. List stakeholder equity

Further Reading

Browse More Terms and Definitions:
Select a Letter
  • A
  • B
  • C
  • D
  • E
  • F
  • G
  • H
  • I
  • J
  • K
  • L
  • M
  • N
  • O
  • P
  • Q
  • R
  • S
  • T
  • U
  • V
  • W
  • X
  • Y
  • Z