what is a balance sheet 
the term balance sheet refers to a financial statement that reports a company s assets liabilities and shareholder equity at a specific point in time balance sheets provide the basis for computing rates of return for investors and evaluating a company s capital structure in short the balance sheet is a financial statement that provides a snapshot of what a company owns and owes as well as the amount invested by shareholders balance sheets can be used with other important financial statements to conduct fundamental analysis or calculate financial ratios investopedia katie kerpel