Balance sheets and business valuations
A Balance Sheet shows the Assets and Liabilities of a company or entity. It details the company’s financial position at a certain point of time.
The three main parts of a balance sheet are:
- Assets less
- Liabilities equals
- Equity (the value of the owner’s interest in the business)
Please note this information is provided as a guide only.
For more information on the components of a balance sheet and their importance visit the Australian Government’s Department of Industry, Innovation and Science site for Business.