In accounting a Balance Sheet provides a financial snap-shot in time of how the business is doing. It reflects the account balances of Assets, Liabilities, and Stockholders' Equity of a business for a particluar time; generally the end of a reporting period, such as month, quarter, or year. Investors and creditors analyze a Balance Sheet to assess the business and it's overall financial health. This financial statements reflects who owns more of the assets, creditors or stockholders.

It is important to note that the Cash account is listed first under Assets, then the additional Asset accounts will be listed below it. Liabilities will be listed, then totaled, and Stockholders' Equity is the sum of Common Stock and Retained Earnings. Retained Earnings comes from the Statement of Retained Earnings.

***Remember the Asset Total will ALWAYS equal Liabilities plus Stockholders' Equity.

Below is an example of what a Balance Sheet will look like:

Shoe Burger Corp.
Balance Sheet
Cash $3,200 Accounts Payable $500
Accounts Receivable $1,000
Office Supplies $400
Stockholders' Equity
Land $17,500 Common Stock $21,000
Retained Earnings $600
Total Stockholders Equity $21,600
Total Assets $22,100 Total Liabilities & Stockholders' Equity $22,100