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The Balance Sheet

The Balance Sheet

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A Balance Sheet is a financial report that shows what a company owns and owes at a specific time. It lists the company's assets (things it owns like cash, buildings, and equipment), liabilities (money it owes to others like loans and bills), and equity (the owner's share of the business). The balance sheet helps to see if the company has more money and resources than it owes. It follows a simple formula: Assets = Liabilities + Equity, making sure everything balances out.

 

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