A balance sheet shows a company's assets, liabilities, and shareholder equity at that point in time. Learn how they work, how to read one, and why they're important.

Joseph Nguyen is a contributing author at Investopedia and a research analyst with experience at a securities brokerage firm. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society ...

A balance sheet is a versatile document that offers a snapshot of a company's or individual's finances at a given point in time. Businesses can use balance sheets to develop plans for the future and ...