The balance sheet is a financial statement that provides a snapshot of a company\'s assets, liabilities and shareholders\' equity at a specific date. On one side of the balance sheet, a company lists its current and non-current assets. On the other side are its liabilities and shareholders’ equity (the latter consisting of paid-in capital and retained earnings). The company’s assets must always be equal to the sum of its liabilities and equity which is the fundamental accounting equation. Assets = Liabilities + Equity The two sides of the balance sheet have to match i.e. balance.