A balance sheet is a financial statement that presents a company's financial position at a specific point in time.

1. Assets: What the company owns.


Current Assets: Cash, inventory, accounts receivable (money owed to the company).

Non-current Assets: Long-term items like property and equipment.



2. Liabilities: What the company owes.

Current Liabilities: Debts due within a year (like accounts payable).

Non-current Liabilities: Long-term debts (like loans).


3. Equity: Owner's share in the company.

Includes common stock and retained earnings (profits not paid out as dividends).

Example of a Simple Balance Sheet

ABC Company Balance Sheet

As of December 31, 2024

Assets	Amount
Current Assets:
Cash	50,000
Accounts Receivable	30,000
Inventory	20,000
Total Current Assets	100,000
Non-current Assets:
Property, Plant & Equipment	150,000
Total Assets	250,000

Liabilities	Amount
Current Liabilities:
Accounts Payable	20,000
Short-term Debt	10,000
Total Current Liabilities	30,000
Non-current Liabilities:
Long-term Debt	70,000
Total Liabilities	100,000

Equity	Amount
Common Stock	50,000
Retained Earnings	100,000
Total Equity	150,000

| Total Liabilities and Equity | 250,000 |

1. balance sheet Shows the company's ability to pay off debts.


2. balance sheet helps investors to evaluate the company’s worth.


3. balance sheet assists lenders in deciding loan approval.


4. balance sheet helps in monitoring growth or decline over time.


5. balance sheet evaluates how efficiently a company uses its assets.


6. Identifies financial risks and liabilities.


7. balance sheet ensures that, company meets legal and regulatory requirements.

Balance Sheet as of [Date]

The above balance sheet of Koleosho Enterprise, the financial position clearly, ensuring that the assets balance with liabilities and equity.