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A '''balance sheet''' is a fundamental [[accounting]] [[statement]] that provides a 'snapshot' of an entity's assets, liabilities and equity at a point in time.
A '''balance sheet''' is a one of the fundamental [[accounting]] [[statement]]. It provides a "snapshot" of a financial entity's assets, liabilities, and total equity at a fixed point in time. Less commonly, it is also referred to as a '''statement of financial position'''.<ref>[http://www.accountingcoach.com/terms/B/balance-sheet.html Balance sheet definition]</ref>
==Use==
===Private Sector===
Any meaningful analysis of a company's finances must include a review of its balance sheets for the current and past operating cycles. Because of the large amount of information that such a summary can provide, United States law requires that all publicly held and traded companies provide balance sheets at regular intervals (usually four times a year).
===Public Sector===
Unlike the heavily regulated companies in the private sector, the federal government is not required to publicize any balance sheets it creates internally. However, because some of the financial documents and other information (like current debt, operating expenses in the form of the perennial budget, etc) are a matter of public record, similar information can be gleaned from the federal records.<ref name="discovery">[http://www.discovery.org/a/2521 Where is the balance sheet?]</ref>
State and local governments are also not required to publish this or many other financial statements, but as with the federal government, such information can still be obtained through more convoluted means. These bodies are, however, held by federal regulations to more stringent standards, something from which the federal government is exempt.<ref name="discovery"></ref>
However, certain meaningful ratios can be gleaned from the balance sheet alone, such as Debt/Equity ratio, Working Capital ratio.
However, certain meaningful ratios can be gleaned from the balance sheet alone, such as Debt/Equity ratio, Working Capital ratio.
Fundamental to proper balance sheet preparation is a rigorous "cut-off". That is, if a balance sheet has a date of November 30, it must not include cash received on December 1.
Fundamental to proper balance sheet preparation is a rigorous "cut-off". That is, if a balance sheet has a date of November 30, it must not include cash received on December 1.
==References==
<references/>
[[Category:Accounting Terms]]
[[Category:Accounting Terms]]
[[Category:Accounting]]
[[Category:Accounting]]