balance sheet

A firm’s financial statement that provides a picture of its assets, debts and net worth at a specific point in time. The balance sheet provides a snapshot of a firm at the end of a fiscal quarter or year, representing the total impact of all expenses and cash flow at that date. The major sections of the balance sheet are assets, liabilities and shareholder’s equity. As the name implies, the sections must balance: The asset value must equal the sum of liabilities and shareholder’s equity. The balance sheet is the starting place to analyze a company’s financial strength. The balance sheet can be found in the company’s annual and quarterly reports.