Accounting

    Balance sheet

    A snapshot of what a business owns, owes, and is worth at a point in time.

    Definition

    Assets = Liabilities + Equity. Cash, AR, equipment are assets; AP, loans are liabilities. Equity is what's left for the owner.

    Related terms

    Profit & loss (P&L)

    A statement summarizing revenue minus expenses over a period.

    Accounts receivable (AR)

    Money customers owe you for invoiced but unpaid work.

    Accounts payable (AP)

    Money you owe suppliers for goods or services received but not yet paid.