Business, finance and operations

Balance sheet

  • Business, finance and operations

Definition

A snapshot of what a business owns, what it owes and the value left for its owners at a point in time.

Example

Assets of €5m are funded by €3m of liabilities and €2m of equity.

For your role

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Why it matters

It shows the financial strength of a business at a point in time.

Where it is used

Annual reports, audits and investor updates.

How to calculate it

Total assets = total liabilities + shareholders’ equity

Worked example

Assets of €5m are funded by €3m of liabilities and €2m of equity.