By the term “Balance,” the first thought that comes to our mind is equal proportion. Centuries back, the idea was implemented to get a clear snapshot of the current condition of the business.
The balance sheet is a summary of the financial position of a company at a particular point of time. This position is conveyed by listing all the things of value owned by the company, on one side, and the payables owed by the company, on the other side. It is a quantitative summary of a company’s financial condition at a specific of time, which includes assets, liabilities and net worth.
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