A balance sheet is an important financial statement prepared by a company at a specific date on a regular basis to showcase its financial situation.
The balance sheet includes cash-flow statement, income & expense statement, asset and liability details. In short, it shows all transaction details.
A balance sheet is the main point interest for a shareholder, company advisor, business partner etc.
The Balance sheet abides by the following rule:
Assets = Liability + Shareholder’s Equity