Balance Sheet

What is a Balance Sheet?

The Balance Sheet can also be called the Statement of Financial Position.

This statement explains the balance of the Assets, Liabilities and Equity ledger accounts as at the reporting period. This relationship is also represented by the Accounting Equation.

To see a summary of the balance sheet relationship here is an infographic . The balance sheet balances because of the accounting equation!

What is a balance Sheet?

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Jan'18

What is a Balance Sheet or Statement of Financial Position?

  What is the Balance Sheet or Statement of Financial Position? This statement explains the balance of the assets, liabilities and equity ledger accounts as at the reporting period. As you can see in this example, the balance sheet relationship is represented by the Accounting Equation. Because of this logical equation, …

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