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Accounting & Tax vocabulary · Financial Statements

Balance sheet

Meaning in accounting & tax, with examples

/ˈbæləns ʃiːt/nounCore term

In accounting & tax, balance sheet means: A financial statement that shows what a company owns (assets), what it owes (liabilities) and the owners' share (equity) on a specific date.

In Turkish: bilanço, finansal durum tablosu

How it is used

One of the main financial statements; IFRS calls it the statement of financial position. Items are on or off the balance sheet, and the two sides must always balance.

Example sentences

  1. The new loan will appear as a liability on the balance sheet.

  2. Cash on the balance sheet fell by 20 percent compared to last year.

Common collocations

  • on the balance sheet
  • strong balance sheet
  • balance sheet date
  • off-balance sheet
  • income statementA financial statement that shows a company's revenue, expenses and resulting profit or loss over a period, such as a quarter or a year.
  • assetSomething a business owns or controls that is expected to bring future economic benefit, such as cash, receivables, stock, machinery or software.
  • liabilityAn amount a business owes to others, such as suppliers, banks, employees or the tax office, which it will have to settle in the future.
  • equityThe owners' share in a business: what remains when all liabilities are subtracted from the assets. It includes paid-in capital and retained earnings.
  • cash flow statementA financial statement that shows how cash came into and went out of a business during a period, split into operating, investing and financing activities.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Financial Statements

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This page explains English vocabulary for learners. It is not financial advice.