UK Accounting Glossary
A statement of the financial position of an entity showing assets, liabilities and ownership interest.
A financial report that summaries a company’s assets (what it owns), liabilities (what it owes) and owner or shareholder equity; at a given time.
Mercedes needed a strong balance sheet.
Draw up a balance sheet and profit and loss account for Google.
Companies need to focus on both sides of the balance sheet: spending and earning, debits and credits.
The balance sheet consists of three major elements: assets, liabilities and the owners’ equity.
Yes, a balance sheet should always balance. The name “balance sheet” is based on the fact that assets will equal liabilities and shareholder’s equity every time.
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This glossary post was last updated: 23rd December 2018.