ACCOUNTING GLOSSARY
Balance Sheet
Balance Sheet
A statement of assets, liabilities and equity at a point in time.
What does Balance Sheet mean?
A statement of assets, liabilities and equity at a point in time. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Balance Sheet in context
The year-end balance sheet shows cash, receivables, debt and owners' equity.
Why it matters in financing
Balance Sheet can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related accounting terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.