Among other items of information, a balance sheet states (1) what assets the entity owns, (2) how it paid for them, (3) what it owes (its liabilities), and (4) what is the amount left after satisfying the liabilities. Balance sheet data is based on a fundamental accounting equation (assets = liabilities + owners' equity), and is classified under subheadings such as current assets, fixed assets, current liabilities, Long-term Liabilities.
Use balance sheet in a sentence
The accountant for the business is preparing the taxes for the year. He lists all assets and liabilities on the balance sheet.
The company maintained a proper balance sheet which recorded all transactions and made the accountants very happy when tax time came around.
One look at the balance sheet of the company would show that they had more cash than they knew what to do with