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Published On: Tue, Feb 5th, 2013

Balance Sheet

The Balance Sheet is the section of the financial statements that lists and gives summary of a company’s assets, liabilities, and statement of equity.

The key to analyzing the Balance Sheet is that it measures the relationship of the amount a company owns (its Assets) to the amount a company owes (its Liabilities.)  Additionally the Balance Sheet shows this relationship of Assets to Liabilities at a fixed point in time, usually at calendar or fiscal year end of the company.  Another key fixture of the Balance Sheet is that the value of the Assets accounts must equal the value of the Liabilities Accounts plus the Shareholder’s Equity Account or A=L+E.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.

 

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