A primary statement of an entity that presents a snapshot of its financial position at a given point in time, for the purposes of reporting the results (of its overall performance) to all relevant users of the entity’s financial statements. A balance sheet lists assets, liabilities, and net worth (equity) at the time of the report.

This statement presents a summary of the financial balances, displaying the entity’s total assets, on one side, and how these assets are financed, typically either through debt (liabilities) and equity. No matter the type of entity (a sole proprietorship, a partnership, a corporation, a private limited company, a government or not-for-profit entity), a balance sheet is a basic block of its financial accounts.

A balance sheet is an account-wise reflection or embodiment of the accounting equation.

It is also known as the statement of financial position.