Glossary · from the DESK dictionary
Balance Sheet
A snapshot of a company's assets, liabilities, and equity at a specific point in time.
In plain words
Shows what a company owns (assets) and who has a claim on it (liabilities + equity) — the two sides always have to balance.
Formula
Assets = Liabilities + Equity
The fundamental accounting equation: everything a company owns was financed either by debt or by equity.
What it means for traders
One of the three core financial statements (alongside the income statement and cash flow statement) in any fundamental analysis.
Common pitfalls
Shows only a single point in time — can be temporarily "dressed up" through clever timing (window dressing).
Related terms
Accounting Equation · Accounting · Accounting Principles (GAAP/IFRS) · Accounts Receivable · Accumulated Other Comprehensive Income (AOCI) · Asset Side · Annual Report · Asset · Bonds Payable · Book Value · Cash and Cash Equivalents (CCE) · Contingent Liability · Current Assets · Current Ratio · Deferred Revenue · Deferred Tax Asset/Liability · Financial Position · Income Statement
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.