Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's financial position, detailing its assets, liabilities, and shareholders' equity. It helps investors assess the financial health and stability of a company. Here are the key components of a balance sheet:- Current assets: Liquid assets expected to be converted into cash within a year, including cash and cash equivalents, marketable securities, accounts receivable, inventories, and prepaid expenses.- Fixed assets: Long-term assets such as property, equipment, furniture, machinery, and intangible assets like software.- Current liabilities: Short-term obligations due within a year, such as short-term debt, accounts payable, and accrued expenses.- Long-term liabilities: Debts and obligations that are due after more than one year, such as long-term loans and bonds.- Shareholders' equity: The residual interest in the company’s assets after deducting liabilities, including paid-in capital and retained earnings.This structure provides a clear picture of a company's financial health and its ability to meet short- and long-term obligations.