Definition: A financial statement showing assets, liabilities, and owners' equity at a particular date. The basic equation is assets = liabilities + equity.
Example
A company reports $500,000 in assets and $300,000 in liabilities, leaving $200,000 in equity.
Keep the distinction clear
A balance sheet is a snapshot. An income statement measures revenues and expenses over a period, and cash flow measures movements of cash.
Related terms
Asset · Liabilities · Income Statement
Keep studying
Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return
References: FREC Course II syllabus: investment concepts
Pronunciation (US): BAL-uns SHEET (capitals show stress)
Pronunciation reference: Merriam-Webster
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