What Does A Balance Sheet Show
A Balance Sheet or Statement of Financial Position shows the financial position of Assets, Liabilities And Owner’s Equity / Equity or Capital of a business on particular time of a specified date. It is reported to all the Users of Financial Statements whether they are internals or externals to the business. You Can Also Read Out, “ What Goes On A Balance Sheet In Accounting ” If both sides of Balance Sheet equalizes, then it means that business uses its resources ( Assets ) effectively to meet its goals by meeting obligations payable either to Outsiders ( Liabilities ) such as Creditors / Accounts Payable or to Owners of the business (Internal Resources). This Financial Position actually proves the Accounting Equation as shown below: Assets = Liabilities + Owner’s Equity