Financial Poise

Balance Sheet

  • March 17, 2022
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The Balance Sheet is one of three fundamental financial statements and is key to both financial modeling and accounting. The balance sheet shows a reader the company’s or individual’s total assets and how they are financed, either through either debt or equity. A balance sheet is also referred to as a “statement of net worth” and “statement of financial position.” All balance sheets are based on the fundamental equation: Assets = Liabilities + Equity.