The balance sheet
Example: Balance sheet presents assets
Definition
"The balance sheet" is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition and helping stakeholders assess its stability and operational efficiency.
Etymology
The term "the balance sheet" originates from the accounting practice of balancing the two sides of a financial statement: assets on one side and liabilities plus equity on the other. The word 'balance' reflects the idea that these two sides must equal each other, ensuring accurate financial reporting.
Learn to use this word actively
"The balance sheet" appears in the Vocaplus list "English - Finance - (A1-C2) - set 1", containing 150 commonly used words.
Would you like to not only understand these words, but also remember them and use them actively? Create a free account and select English as the language you want to learn.
Create a free account
