Balance report

Last updated: 2022-05-12

The balance sheet summarizes the company’s assets, liabilities and equity. The report shows the value of the assets, liabilities and equity at a specific point in time, for example at the turn of a month or a turn of the year.

Examples of accounts presented in a balance sheet are cash, accounts receivable, accounts payable and share capital.

In a balance report, it is also possible to read how the values ​​of the various balance items have changed over a period of time. This means looking at how the value of each account in the balance sheet has increased or decreased since the beginning of the year. This is done by comparing the opening and closing balance for each account.

The name balance sheet comes from the fact that the assets must be as large as the liabilities and equity together, in other words that there must be a balance between these two sides.

Assets = Liabilities + Equity