1.2.1. Balance Sheet
A balance sheet (also called the statement of financial position or statement of condition) provides detailed information about a company’s assets, liabilities, and shareholders’ equity at a specific point in time.
It is critical to understand that, unlike other kinds of financial statements, a balance sheet does not reveal how a business is performing over time. It simply shows a company’s financial condition as of a given date, and for this reason a balance sheet is often referred to as a “snapshot” of the company’s finances.
The following equation expresses the basic principle of the balance sheet:
assets = liabilities + shareholders’ equity
The two sides of the equat