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A balance sheet is a document that details the assets, liabilities, and shareholders’ equity of an organization. Balances sheets summarize the value of everything an entity owns and all the debts it has. Balance sheets indicate the capital structure of their organization.
Balance sheets are one of the most commonly referenced financial statements a company produces. Investors will generally analyze a company’s balance sheet to help identify its value. Internally, balance sheets can help inform decisions for a company’s management team.