Definition of Balance sheet:
A condensed statement that shows the financial position of an entity on a specified date (usually the last day of an accounting period).
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. With income statement and cash flow statement, it comprises the set of documents indispensable in running a business. An audited balance sheet is often demanded by investors, lenders, suppliers, and taxation authorities; and is usually required by law. To be considered valid, a balance sheet must give a true and fair view of an organizations state of affairs, and must follow the provisions of GAAP in its preparation. Also called statement of condition, statement of financial condition, or statement of financial position.
A statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
Synonyms of Balance sheet
Book, Account book, Record book, Register, Registry, Log, Account book, Accounts payable ledger, Accounts receivable ledger, Bank ledger, Bankbook, Books, Card ledger, Cashbook, Cost card, Cost ledger, Cost sheet, Daybook, Factory ledger, Inventory, Journal, Ledger, Log, Logbook, Passbook, Purchase ledger, Record book, Register, Registry, Sales journal, Sales ledger, Stock ledger, Stores ledger, Suspense ledger
How to 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.
- It also removes fixed-property assets from the balance sheet to the pension scheme.
- One look at the balance sheet of the company would show that they had more cash than they knew what to do with.
Meaning of Balance sheet & Balance sheet Definition