A balance sheet is often described as a "snapshot of a company's financial condition".
Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business' calendar year.
Personal net worth is the difference between an individual's total assets and total liabilities.
Another way to look at the balance sheet equation is that total assets equals liabilities plus owner's equity.
Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner's money (owner's or shareholders' equity).
Often, these businesses owe money to suppliers and to tax authorities, and the proprietors do not withdraw all their original capital and profits at the end of each period. A balance sheet summarizes an organization or individual's assets, equity and liabilities at a specific point in time. A personal balance sheet lists current assets such as cash in checking accounts and savings accounts, long-term assets such as common stock and real estate, current liabilities such as loan debt and mortgage debt due, or overdue, long-term liabilities such as mortgage and other loan debt.Securities and real estate values are listed at market value rather than at historical cost or cost basis.