Developing Balance Sheets

A balance sheets lists:

• Assets – items that are owned, and
• Liabilities – debts and financial obligations owed others

Uses:

• Shows the value of business assets and the amount of money owed others on a specific date.
• Can provide a measure of business performance over a period of time.
• Provides a cross check of financial records to ensure accuracy.

Source: Getting on Track: Better Management through Basic Financial Statements, Rodney L. Sharp, John P. Hewlett, and Jeffery E. Tranel.