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The Finance Book, 2nd Edition
book

The Finance Book, 2nd Edition

by Stuart Warner, Si Hussain
April 2022
Beginner
535 pages
11h 35m
English
Pearson Education
Content preview from The Finance Book, 2nd Edition

4 Balance sheet

‘We tend to focus on assets and forget about debts.’

Suze Orman, financial adviser, author and American media personality

In a nutshell

The balance sheet is one of the primary financial statements prepared by a company. It shows a company’s financing structure and financial position at a point in time.

The balance sheet presents a picture of a company’s assets and liabilities, together with the shareholders’ stake in the company. It can be used to assess both liquidity and solvency.

The balance sheet is also known as the statement of financial position.

Need to know

The balance sheet is a ‘snapshot’ of the business’s assets ...

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Publisher Resources

ISBN: 9781292402000