5.2.2. The Balance Sheet 

The balance sheet provides information about the value of a business and how well its assets have been used to meet the financial goals of the operation. The balance sheet provides a comprehensive summary of an organization’s financial position at a specific point in time. It outlines the assets owned and liabilities owed, thereby offering a clear representation of the entity’s financial standing. This document is essential for tracking the organization’s financial progress over time. Additionally, financial institutions and investors use the balance sheet to evaluate the organization’s fiscal health before making investment or take decisions.