One of four financial statements that provides information on the financial standing of a company. The balance sheet is a report that summarizes the assets that a company owns, the money that is owed to lenders and investment that shareholders have made into the company at a specific point in time. The reports shows that Assets (what the company owns) minus Liabilities (what it owes its creditors) equals Shareholders’ Equity (what shareholders have invested in the company), on a specific date. Assets do not represent the financial worth of the company.