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ReadME.txt
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ReadME.txt
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BALANCE SHEET
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a
specific point in time. It consists of three main components: assets, liabilities, and equity. The balance
sheet adheres to the accounting equation: Assets = Liabilities + Equity.
Purpose of the Balance Sheet:
Provides a snapshot of the company's financial health at a specific moment.
Assists in assessing liquidity, solvency, and overall financial stability.
Helps investors, creditors, and analysts in making informed decisions about the company's financial position.
A well-prepared balance sheet is an essential tool for financial analysis and is a key component of a company's
financial reporting. It is typically included in a set of financial statements along with the income statement
and cash flow statement.