It is the snapshot of the moment that includes all the assets of the business, and all the sources of funds needed for the above assets. It consists of two major categories with equal totals
A. Assets = (total assets)
- Investments
- Product & raw material inventories
- Customer credit receivables
- Cash on hand
- Third-party credits
B. Liabilities = (total sources of funds needed for the above assets)
- Original capital + accumulated profits
- Credits from banks
- Credits from suppliers
- Credits from government agencies
- Credits from third parties
