balance sheets

A balance sheet is a financial statement that shows a company's financial position at a specific moment. It lists what the company owns (assets), such as cash, equipment, and inventory, and what it owes (liabilities), like loans or bills. The difference between assets and liabilities is called shareholders’ equity, representing the owners’ stake. The balance sheet is called so because assets must always equal the sum of liabilities and equity, providing a clear snapshot of the company’s resources and obligations at a given time.