Balance Sheet

Definition - What does Balance Sheet mean?

A balance sheet is a document that provides important financial information about a company. Such information includes the company's assets and liabilities, shareholders' equity, etc. In the context of the law, balance sheets are used by regulatory agencies to gain insight into the company's affairs to make sure it is following the law.

Justipedia explains Balance Sheet

Balance sheets for publicly traded companies are also used by investors to help them evaluate the financial status of the company. The information that balance sheets provide can help the investor decide if he or she would like to purchase stock in the company. Balance sheets reveal the liabilities and the assets of the company. This information can say a lot about its financial health. A company can be a less appealing prospect if its liabilities far outweigh its assets.

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