Okuzeka
Finance & Banking vocabulary · Financial Statements

Balance sheet

Meaning in finance & banking, with examples

nounCore term

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

In Turkish: bilanço

How it is used

Used by analysts, credit officers and auditors. Assets always equal liabilities plus equity. People talk about a strong or weak balance sheet, and about items that are on or off the balance sheet.

Example sentences

  1. Before we approve the loan, we need the company's last three year-end balance sheets.

  2. The bank has a strong balance sheet with plenty of liquid assets.

Common collocations

  • strong balance sheet
  • off-balance-sheet
  • balance sheet date
  • clean up the balance sheet
  • assetSomething of value that a person or company owns or controls, such as cash, buildings, receivables or investments.
  • liabilityMoney or another obligation that a company owes to others, such as loans, unpaid bills or, for a bank, its customers' deposits.
  • equityThe owners' share of a company: what is left when liabilities are taken away from assets. It includes paid-in capital and retained profits.
  • income statementA financial statement showing a company's revenue, costs and profit or loss over a period, such as a quarter or a year.

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.