what is balance sheet for


3 Answer(s)


Balance sheet is an indicator of Assets and Liabilities of a company which in turn signifies the actual worth of the company. Assets-liabilities gives the actual worth of the company.

balance sheet is prepared to find out the actual value of the company after paying all the liabilities of the company and the remaining value in other terms also known as net worth.

The Balance Sheet presents the financial position of a company at a given
point in time.It is comprised of three parts: Assets, Liabilities, and
Shareholder’s Equity. Assets are the economic resources of a company. Liabilities are the claims that creditors have on the company’s resources.
equity is comprised of the claims that investors have on the
company’s resources after debt is paid off.