Balance sheet is the basic financial statement which provides a snapshot of the company situation at a particular moment of time, recording the assets and liabilities of the company.
 
Balance sheet is one of the main components of a company's Report and Accounts. the balance sheet provides a snapshot of everything the company owes and owns at the end of the financial year in question. On a specific date it lists:

• tangible assets

• intangible assets

• stock

• debtors

• cash

• bank creditors

• trade creditors

• share capital

• reserves

Where the profit and loss account tells you how the company has performed in the previous year, the balance sheet reveals things about its fundamental health, like whether it can pay its debts and how good its cash management is. A "strong" balance sheet is one where liabilities (including borrowings) are considerably outweighed by assets (including cash).

Significance: if the company is having problems, the balance sheet (together with the cash flow statement) will tell you whether it can stand the strain.

Related Reading:

Finance Basics: The Basic Links 
Working Capital  

• Refresh your brain

• Wash away stress and tension

• Relieve headaches

• Overcome stressful feelings

You're thrashed. It's been a hard day and you feel the pressure of mental overload. No worries. Simply slip on your headphones and listen to Brain Massage.
Check