The Balance Sheet shows a picture of the assets, liabilities and equity (net worth) of a business as of a specific day. The Balance Sheet shows two views of the business -- what resources you own (Assets) and the credit or investment that made it possible to acquire these resources (Liabilities and Equity).
The basic equation of a Balance Sheet is Assets = Liabilities + Equity. In other words, what you own equals what you owe plus what the business is worth.
The following example shows some of the common elements of the Balance Sheet.
For Period Ending December 31, xxxx
|Stocks & Bonds||16,588.00|
|Total Other Assets||135,022.96|
|Bank Line of Credit||35,000.00|
|Total Liabilities and Equity||144,978.96|