Balance Sheet

A balance sheet is a financial statement that includes a company’s assets, liabilities, equity and debt for a specific time. The assets and liabilities heads of a balance sheet should always tally, as any transaction would affect both sides. 

This sheet provides information about the financial position of the company. It is also used as a basis for calculating a company’s capital structure and rates of return for investors. With the help of a balance sheet, financial analysts assess a company’s ability to meet future debt obligations, cover its operating needs and distribute returns to stockholders.

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