A balance sheet is a financial statement that summarizes the current financial condition of an individual, company, or other entity. It provides various types of information such as assets, liabilities, and equity. It is not an analysis of financial performance.
A balance sheet is often presented alongside one for the following period, showing changes in equity (fundamental changes in a company’s balance sheet items) compared with the previous accounting period.
A balance sheet presents financial information in a specific format. Each portion of the balance sheet is given an explanation and includes standard accounting terminology used to describe assets, liabilities, and equity.