Asked by Piper Chatman on Jun 25, 2024
Verified
What is the balance sheet? What is its purpose?
Balance Sheet
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insight into what the company owns and owes as well as the amount invested by shareholders.
Purpose
The justification for the existence, creation, or action of something.
- Understand the balance sheet's purpose, structure, and its role in financial reporting.
Verified Answer
GC
Galilee CastilloJun 30, 2024
Final Answer :
The balance sheet is one of the four required financial statements a company prepares periodically.It describes a company's financial position by listing the types and amounts of assets,liabilities,and equity of a business at a specified point in time.The statement's purpose is to provide information that helps users assess the financial condition of the business.
Learning Objectives
- Understand the balance sheet's purpose, structure, and its role in financial reporting.