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BalanceSheet
The balance sheet is a report that summarizes all of an entity's assets, liabilities, and equity as of a given point in time.The balance sheet is one of the documents included in an entity's financial statements. Of the financial statements, the balance sheet is stated as of the end of the reporting period, while the income statement and statement of cash flows cover the entire reporting period.The balance sheet displays the company’s total assets, and how these assets are financed, through either debt or equity. It can also be referred to as a statement of net worth, or a statement of financial position. The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity.
Typical line items included in the balance sheet (by general category) are:
- Assets: Cash, marketable securities, prepaid expenses, accounts receivable, inventory, and fixed assets.
- Liabilities: Accounts payable, accrued liabilities, customer prepayments, taxes payable, short-term debt, and long-term debt.
- Shareholders' equity: Stock, additional paid-in capital, retained earnings, and treasury stock.
The balance sheet is also known as the statement of financial position.