Balance Sheet shows financial position or condition at a specific point in time. Sometime balance sheet is known a statement of financial position or statement of condition. A Financial Statement that summarizes a company’s Assets, Liabilities and Owner Equity called balance sheet. Three segments (assets, liability and owner’s equity)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
>> Practice Balance Sheet Format.