Balance Sheet - Introduction
- GCSE, AS, A-Level
- AQA, Edexcel, OCR, IB
Last updated 22 Mar 2021
The balance sheet provides a summary of the assets and liabilities of a business. It is a snapshot of those assets at a particular moment in time.
The balance sheet always balances because of the use of "double-entry" bookkeeping to record business transactions.
Every transaction in a business always has two equal effects on the assets and liabilities of a business. Some examples are shown below.