A financial statement that reports the financial position of a business at a point in time; lists the types and dollar amounts of assets, liabilities, and equity as of a specific date; also called the statement offinancial position.
• Used to show the financial position of a business entity on a specific date.
• They are always prepared at the end of the year and often more often.
• A balance sheet lists the businesses' assets, liabilities and owner's equity.
• The balance sheet is dated because the financial position can change quickly.
Three Sections: assets, liabilities and owner's equity.