A balance sheet is a financial statement which shows the assets, liabilities and capital of a business at a particular date.
Balance sheets are different from profit and loss accounts which show profits for a time period such as a year. Balance sheets show the state of the business at one moment in time – things could be somewhat different tomorrow. A balance sheet is often described as a ‘snapshot’ of a business at one moment in time.
The money amounts of these assets, liabilities, and capital are taken from the accounting records of the business.
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