Final answer:
A balance sheet is an accounting tool that lists the final balances of the permanent accounts, including assets, liabilities, and owner's equity. It provides stakeholders with an understanding of a business's financial position.
Step-by-step explanation:
A balance sheet is an accounting tool for a business that lists its assets and liabilities. It shows the financial position of a business at a specific point in time, usually at the end of a fiscal period. The balance sheet reports the final balances of the permanent accounts, which include assets, liabilities, and owner's equity. It helps stakeholders understand the financial health and stability of a business.