What is a Balance Sheet?
The Balance Sheet is a central component of a company’s Annual Financial Reports.
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It presents a company’s assets and liabilities as of a specific reporting date and thus shows the financial position of the business.
On the assets side, fixed and current assets are reported; on the liabilities side, provisions and liabilities are shown.
This comparison makes it clear how the company’s assets are financed and how financially stable the company is.
The Balance Sheet therefore serves entrepreneurs, investors, banks and public authorities as an important source of information about a company’s economic situation.
Example Extract from the Business Register
