What Is the Function of a Balance Sheet?

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The function of a balance sheet is to inform the company owners, investors and creditors of the assets, liabilities and owner's equity at a specific point in time. Understand the function of a balance sheet with information from an accounting professor in this free video on business.

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Video Transcript

Hi, my name is Shawn Jones, adjunct professor at Argosy University. Today, we're going to discuss the function of a balance sheet. A balance sheet is used by owners of the company, investors, creditors to understand what are the assets and liabilities and owner's equity at a given point or a...or a specific date in time within that company. The balance sheet is not an accumulation of what happened over a given period of time like the income statement is. But the balance sheet, simply put, will say, "What was my cash or my assets, my liabilities, and owner's equity at this date in this period of time?" For more information about this topic, please visit our website at argosy.edu. There you can find our phone number or an address to come and visit our Salt Lake City campus.

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