Define balance sheet

Define balance sheet

A financial statement that summarizes a company’s assets, liabilities and shareholders’ equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.

The balance sheet must follow the following formula:

Assets = Liabilities + Shareholders’ Equity

Source: http://www.investopedia.com/terms/b/balancesheet.asp

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