A balance sheet is one of the most important financial statements of a business. It clearly shows the financial position of a company at a specific point in time. The balance sheet is based on a simple but powerful accounting equation: Assets = Liabilities + Equity. Assets represent what a company owns, such as cash, inventory, investments, and fixed assets. Liabilities show what a company owes, including loans, expenses payable, and other obligations. Equity reflects the owner’s or shareholders’ net worth in the business after all liabilities are deducted from assets. This statement helps students, business owners, and investors understand how a company is funded and how its resources are used. A strong balance sheet indicates financial stability, good management, and long-term sustainability. Whether you are studying accounting or managing a business, understanding the balance sheet is essential for smart financial decision-making. #BalanceSheet #AccountingBasics #CommerceEducation #FinancialStatements #BusinessKnowledge