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Balance Sheet
Also called the statement of financial condition, it is a summary of a company's assets, liabilities, and owners' equity. A Balance Sheet is one of the main components of a company's Report and Accounts. The balance sheet provides a snapshot of everything the company owes and owns at the end of the financial year in question.
Where the profit and loss account tells you how the company has performed in the previous year, the balance sheet reveals things about its fundamental health, like whether it can pay its debts and how good its cash management is. A 'strong' balance sheet is one where liabilities (including borrowings) are considerably outweighed by assets (including cash).
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Added: Sun May 14 2006
