Balance Sheet refers to the statement prepared quarterly, semiannually or annually to depict the financial position of the business concern. Balance Sheet is also called the statement of assets, capitals and liabilities. It shows asset's in one side and capital & liabilities in another side and try to balance the both sides' total amount as per the rules of accounting equation (Assets = Capital + Liabilities). Through the balance sheet you can know the amount of current and fixed assets, the amount of equity and debt capital and the short term and long term financial obligations the company have.