Meaning & use
balance sheet
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Meanings
nouncountablefinance
A financial statement that lists what a company owns and what it owes, along with the owners' share, at one particular date.
Grammar: Countable: the balance sheet, annual balance sheets.
Patterns
- a strong balance sheet
- on the balance sheet
The company's balance sheet showed more debt than cash at year end.
Investors read the balance sheet to judge whether the firm can pay its bills.
A strong balance sheet helped the retailer survive the downturn.
nouncountablefigurative
An overall list of the good and bad points of a situation, used figuratively to weigh gains against losses.
Grammar: Usually figurative, with a phrase like of the policy.
Patterns
- the balance sheet of something
On the balance sheet of the move, better pay outweighs the longer commute.
The mayor drew up a balance sheet of the project's costs and benefits.
Looking at the balance sheet of her career, she felt satisfied.
Word forms
| plural | balance sheets |
|---|
Common combinations
- strong balance sheet
- The bank has a strong balance sheet.
- on the balance sheet
- The debt appears on the balance sheet.
- balance sheet total
- The balance sheet total rose by ten percent.
- read a balance sheet
- Learn how to read a balance sheet before investing.
- balance sheet date
- The balance sheet date is December 31.
Synonyms and how they differ
- statement of financial position
- Statement of financial position is the formal name used in accounting standards, and balance sheet is the ordinary shorter name.
- financial statement
- Financial statement is broader and includes income and cash flow statements as well as the balance sheet.
- ledger
- A ledger is the detailed book of all entries, while a balance sheet is a summary at one date.
- income statement
- An income statement shows earnings over a period, whereas a balance sheet shows a snapshot of assets and debts.
Word family
Commonly confused: balance sheet or income statement?
balance sheet vs income statement
An income statement reports revenue and costs over a period of time, while a balance sheet shows assets and liabilities on a single date.
Practice
To see what the company owns and owes on December 31, check the ___.
Choose one answer.
A balance sheet lists assets and liabilities at one date. An income statement covers earnings over a period, which is the tempting wrong choice.
Make it your own
Write a sentence using “balance sheet”, then check it and compare it with the examples above.