A balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific point in time. It outlines the assets, liabilities, and shareholders’ equity, adhering to the accounting equation: Assets = Liabilities + Equity. Assets represent resources owned, liabilities indicate obligations, and equity reflects ownership value. This statement aids stakeholders in assessing financial health, operational efficiency, and liquidity, forming a critical component of financial analysis and decision-making.