A financial snapshot of what a business owns (assets), what it owes (liabilities), and what the owners have invested (equity) at a specific point in time. Assets always equal Liabilities + Equity.
How to read it
Assets show what the business owns or controls, liabilities show obligations, and equity is the residual interest. The equation must balance for the same statement date.
If assets are $420,000 and liabilities are $220,000, equity is $200,000.
Where this connects to Impresa
You may encounter this concept when reviewing Financial Health. Start with the underlying inputs and check the applicable reporting period before interpreting the result.
Read the Financial Health guideDefinitions here explain the concept. Accounting treatments, formulas, and industry comparisons may vary. Use your own records and qualified advice for material decisions.