‘We tend to focus on assets and forget about debts.’
Suze Orman, financial adviser, author and American media personality
The balance sheet (or statement of financial position) is one of the key financial statements prepared by a company. It shows a company’s financial position at a point in time.
Values are attributed to every asset and every liability to give a net overall position or net worth of a business.
It is useful to think of the balance sheet as a snapshot of the business’s assets and liabilities. It is a static document and a business should take repeated snapshots at fixed intervals (usually annually and also more frequently) if it wishes to see how the assets and liabilities change ...