What is the purpose of a balance sheet?

To provide a snapshot of a business's assets, liabilities, and equity at a specific point in time.

Define 'assets' in the context of a balance sheet.

Assets are the items or resources a business owns.

Liabilities are what a business owes to third parties.

Equity represents what the business owes back to its owners.

I can define basic accounting terms like assets, liabilities, and equity.

1
A balance sheet is a financial report that gives a snapshot of a business's assets, liabilities, and equity at a single point in time.
2
The accounting equation states that assets are equal to liabilities plus equity.
3
A detailed balance sheet divides assets and liabilities into current and non-current categories.