baLance sHeet

THE BALANCE SHEET

The balance sheet is an accountant’s snapshot of the firm’s accounting value on a particular date,as though the firm stood momentarily still.The balance sheet has two sides:On the left are the assets and on the right are liabilities and stockholder’s equity.The balance sheet states what the firm owns and how it is financed.The accounting definition that underlies the balance sheet and describes the balance is:ASSETS=LIABILITIES+STOCKHOLDER’S EQUITY