Balance Sheet

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Beginner Level Global Accounting 2 views

Definition

A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time.

Detailed Explanation

The fundamental equation is: Assets = Liabilities + Equity. It provides a snapshot of financial position. Key components include current assets, fixed assets, current liabilities, long-term debt, and equity.

Example

A company's balance sheet shows ₹100 crore in assets, ₹40 crore in liabilities, and ₹60 crore in equity.

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