Answer: A Balance sheet, is a snapshot of your business on a particular date.
Step-by-step explanation:
Balance sheet has to be submitted by every business organisation. Balance sheet gives the financial position of the business on the given date. Balance sheet provides details such as total assets, total liabilities and the capital of the owner.
The total of the assets have to be equal to the total of liabilities and owner's capital fund and hence the name is balance sheet. It can be represented using equation as
Assets = Liabilities + Capital fund.