Balance sheet

A document detailing a company’s financial position at a certain point in time, usually at the end of an accounting period. The assets listed, such as cash, inventory or property, should balance the liabilities and the shareholders’ equity. Shareholders use the balance sheet information in their assessment of a company’s performance. As there is no standard template for a balance sheet, the exact accounts included on a balance sheet vary between companies and industries. Limited companies and limited liability partnerships are required by law to present an audited balance sheet in their annual company accounts.

This definition is for general information purposes only