BALANCE SHEET

Also called a statement of financial position, a balance sheet is a financial "snapshot" of your business at a given date in time. It lists the association's assets, your liabilities, and the difference between the two, which is the association's equity. The accounting equation (assets = liabilities + equity) is the basis for the balance sheet.

The balance sheet is prepared after all adjusting entries are made in the general journal, all journal entries have been posted to the general ledger, the general ledger accounts have been footed to arrive at the period end totals, and an adjusted trial balance is prepared from the general ledger amounts.

Updated by ADAMS KESSLER 8/9/2008