What Is the Purpose of the Balance Sheet? Explain How

question 109

Essay

What is the purpose of the balance sheet? Explain how it is organized.

---

Definitions:

Financial Statements

Reports that summarize a company’s financial performance, including the balance sheet, income statement, and cash flow statement.

Auditor's Opinion

A statement issued by an independent auditor reflecting their judgement about the accuracy of a company's financial statements.

Audit

The examination and verification of a company's financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant, to ensure accuracy and compliance with accounting standards and regulations.

SEC Statement

Financial documentation that companies are required to submit to the U.S. Securities and Exchange Commission (SEC) detailing their financial performance.