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Balance Sheet
Term category: Finance/Accounting
In 10 words or less: A financial statement that summarizes what the company has and what it owes.

Definition: A balance sheet is a financial document that states the company's assets, liabilities, and stockholder's equity.

StockJargon Advice: Balance sheets are good documents to look at when researching a company. You'll learn all kinds of information about the company, such as how much cash they have on hand, how much money they owe and when they owe it, and what their biggest assets are.

It's great to compare the company's current balance sheet with its past balance sheets from the previous years. It'll show you weather the company is taking on too much debt, building up inventories, etc.

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