Also known as a statement of financial position. An accounting document that provides a snapshot of the financial picture of a business at a specific point in time. One side of the balance sheet lists the assets, moving from most liquid (cash) to least liquid (plant and equipment or goodwill). The other side of the balance sheet lists liabilities in order of immediacy and shareholders' equity. In a company's balance sheet, the assets must equal the liabilities plus shareholders' equity. The balance sheet, along with the profit and loss account, is an important tool for analysing the financial health of a company.