Definition: One of the three main financial statements. It shows what the company owns and owes at a point in time.
Example: A simple balance sheet would show that as of the last day of the previous month, the company had $100 in cash, $60 in accounts payable to vendors, and $40 in owners’ equity.
Why It’s Important: Many metrics of the health of a company can be calculated from the balance sheet.
To learn more, check out the video below or go to https://www.financestrategists.com/terms/balance-sheet/« Back to Glossary Index