Balance Sheet

The Balance Sheet shows the business owner’s equity (net worth) ownership of the business at a particular point in time (e.g., 12/31/01). It is similar to a record of all a person owns minus all the person’s debts.

Example: $175,000 (house value) + $10,000 (car value) $90,000 (mortgage) - $5,000 (car loan balance) = $90,000 (equity)