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.