Its basically a quantitative summary of a company's financial condition at a specific point in time, including assets, liabilities and net worth.
In formal bookkeeping and accounting, a balance sheet is a statement of the book value of all of the assets and liabilities (including equity) of a business or other organization or person at a particular date, such as the end of a "fiscal year." It is known as a balance sheet because it reflects an accounting identity: the components of the balance sheet must (by definition) be equal, or in balance; in the most basic formulation, assets must equal liabilities and net worth, or equivalently, net worth must equal assets minus liabilities (see the accounting equation).
A balance sheet is often described as a "snapshot" of the company's financial condition on a given date. Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time, instead of a period of time.
Check out source for more as well as instruction in creating a Balance Sheet
2007-06-18 01:35:22
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answer #1
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answered by Anonymous
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It shows the financial position of the business to outsiders eg. the government,investors.It shows Assets,Liabilities and capital of the business.It helps the government to know how much to tax; investors on the best opportunity;creditors ...It is used in preparing the cash flow statement,The Property Plant and Equipment etc
2007-06-18 01:35:01
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answer #2
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answered by nimimitu; 1
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Your balance sheets tell the investor how you handle your money, your assets and liabilities. How good are you in paying your bills, are you late or timely. How solid is your business and how good a manager you are.
K
2007-06-18 01:32:26
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answer #3
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answered by Katharina D 1
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At minimum, I would hope to see revenue or gross income, net income, and what happened in between.
2007-06-18 01:41:11
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answer #4
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answered by A Guy 7
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