Finance & Moneyintermediate
Balance Sheet
Definition
A financial statement showing what a business owns (assets), what it owes (liabilities), and the difference (equity or net worth) at a specific point in time.
Why it matters
The balance sheet shows the financial health and stability of your business. Banks, investors, and accountants use it to assess risk and viability.
Example
A business has £50,000 in assets (cash, stock, equipment) and £20,000 in liabilities (loans, unpaid bills). Net equity is £30,000.
Related terms
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