A financial statement that reports a company's assets, liabilities, and equity at a specific point in time.
The balance sheet is a fundamental financial statement that provides a snapshot of a company's financial position. It adheres to the accounting equation: Assets = Liabilities + Equity. Assets represent what a company owns, liabilities represent what it owes to others, and equity represents the owners' stake. It is crucial for assessing a company's financial health, solvency, and capital structure.