Define: Balance Sheet

UK Accounting Glossary

Definition: Balance Sheet

Quick Summary of Balance Sheet

A statement of the financial position of an entity showing assets, liabilities and ownership interest.


Full Definition of Balance Sheet

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.


Examples of Balance Sheet in a sentence

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.

Balance Sheet FAQ's

What are the elements of a balance sheet?

The balance sheet consists of three major elements: assetsliabilities and the owners’ equity.

Does a balance sheet have to balance?

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.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Balance Sheet. Payroll & Accounting Heaven Ltd. January 21, 2020
Chicago Manual of Style (CMS):
Balance Sheet. Payroll & Accounting Heaven Ltd. (accessed: January 21, 2020).
American Psychological Association (APA):
Balance Sheet. Retrieved January 21, 2020, from website:

Definition Sources

Definitions for Balance Sheet are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.