Balance Sheet Legal Meaning and Definition

Here is a simplified definition of the legal term Balance Sheet.

Balance Sheet (noun): A summary or snapshot that shows a company's financial condition at a specific point in time. It lists all the assets (things the company owns) and liabilities (debts the company owes to others). The difference between these assets and liabilities equals owner's equity or net worth of the company. The balance sheet can change day by day as the company conducts its business.