Balance Sheet with Examples (original) (raw)

Last Updated : 21 Apr, 2025

A balance sheet is a type of financial statement that shows the assets, liabilities, and shareholder equity of a business at a certain point in time. The balance sheet serves as the basis for determining investor rates of return and evaluating a company's financial structure. In a nutshell, the balance sheet is a financial statement that displays the assets and liabilities of a business together with the amount of money spent by shareholders. Balance sheets can be used in conjunction with other important financial documents for financial ratio computations and fundamental analysis.

Key Takeaways:

A balance sheet is a type of financial statement that shows an organization's assets, liabilities, and shareholder equity.

It offers a quick glance into the assets and liabilities of a business as of the publishing date.

The assets on the balance sheet are equal to the sum of the liabilities and shareholder equity.

Financial ratios are computed by fundamental analysts using balance sheets.

Example of a Balance Sheet

**XYZ Inc.
**Consolidated Balance Sheet

September 30, 2024(In thousand US )∣September30,2023(InthousandUS)	September 30, 2023(In thousand US )∣September30,2023(InthousandUS)
**Assets
**Current Assets:Cash and Cash EquivalentsMarketable SecuritiesAccounts Receivable, NetInventoriesVendor Non-Trade ReceivablesOther Current Assets	200400150250100300	10020075125-100
**Total Current Assets	**1,400	**600
**Non Current Assets: Marketable SecuritiesProperty, Plant, and EquipmentOther Non Current Assets	100250150	100150150
**Total Non Current Assets	**500	**400
Total Assets	1900	1000
**Liabilities and Shareholder's Equity
**Current Liabilities:Account PayablesDeferred RevenueCommercial PapersTerm DebtOther Current Liabilities	1001001505050	1005015060140
**Total Current Liabilities	**450	**500
**Non Current Liabilities:Term DebtOther Non-Current LiabilitiesTotal Non-Current Liabilities	150150100	10015050
**Total Non-Current Liabilities	**400	**300
Total Liabilities	850	800
Shareholders EquityCommon Stock and Additional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income/(loss)	550200300	10012575
**Total Shareholders' Equity	**1050	**300
Total Liabilities and Shareholders' Equity	1900	1100

Conclusion

The total balance that results from summing all of the debits and credits is known as the footing in accounting. An essential financial tool, a balance sheet computes a company's assets together with its liabilities and equity. Although the data on a balance sheet is typically not as useful as that on an income statement, a corporation can nevertheless utilize it to make internal choices. A business may use its balance sheet to assess risk, confirm that it has adequate cash on hand, and choose whether to borrow additional funds (either through debt or stock).