Definition
A balance sheet is a listing of the assets, liabilities and owners' equity.
It is the book value of the business at a specific point in time. (as of…date). It is everything except for revenue and expense accounts.
Accounts on a balance sheet are listed according to their liquidity. The most liquid are listed first. They are structured by account numbers. Each account has their own series of numbers. The lowest numbers are the most liquid accounts.
Prerequisites