Balance sheet

Balance sheet is a statement showing the financial position of a business at a certain date - usually the end of the financial year. The idea is to have a single simple document which offers a way of measuring the financial position of the business and to judge its creditworthiness and value as an investment.

The balance sheet will show the balances of the business's accounts separated into liabilities (capital invested, creditors, reserves for tax bills, provisions for staff pensions, etc.) and assets (land, buildings, machinery, stock, cash, investments, amounts due from debtors).

See Also: Online share dealing service Stockmarket Centre

Last Updated: May 2007 © Moneyextra.com

MoneyExtra.com recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.