A balance sheet uses a formula that equates a company's assets with its liabilities plus its shareholder equity. The equation should always be in "balance," with the two sides equal. Here's what ...

The accounting equation defines a company’s total assets as the sum of its liabilities and shareholders’ equity. It's the foundation of the double-entry accounting system.

How to Set Up a Balance Sheet for a Sole Proprietor. The balance sheet is based on the accounting equation that states that assets equal liabilities plus shareholders' equity. Therefore, a balance ...

A balance sheet represents a company's financial position for one day at its fiscal year end—for example, the last day of its accounting period, which can differ from our more familiar calendar ...

The balance sheet is one of your company's basic financial statements. It's an equation with the total company assets on one side and debts and owners' equity on the other side.