How to Read a Balance Sheet A balance sheet shows a company’s assets, liabilities, and shareholder equity. Let’s demystify one of the most important documents investors should be aware of.

A balance sheet always adheres to the rule that assets equals liabilities plus equity. Put another way, if you subtract liabilities from assets, equity is what is left over.

A balance sheet is a financial document that presents the financial status of a business through an accounting of a company’s assets, liabilities, and equity. A balance sheet, when looked at ...

A balance sheet is a financial statement that reflects a company's financial position at a specific point in time. For example, a balance sheet can be for Dec. 31 of a particular year.

For example, if you purchased a $500 tool with a credit from a vendor, you can include that tool as an asset in your balance sheet. In the liabilities section of your balance sheet, you can add ...