Balance Sheet: Meaning/Definition - SS1 Accounting Lesson Note

A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity. 

• Assets are what the company owns or controls, such as cash, investments, and property.

Liabilities are what the company owes to others, such as loans, accounts payable, and taxes. 

Equity represents the residual interest in the assets of the company after liabilities are deducted. 

The balance sheet is called a "balance" sheet because the total assets must equal the total liabilities and equity. It is an essential financial statement that helps investors, creditors, and management to assess the financial health of a company.