A snapshot, not a period
A balance sheet shows what the business owns, owes, and the resulting equity at a point in time. Unlike a P&L, it is a snapshot rather than a summary of activity across a period.
The main sections
Balance sheets are organized around a basic accounting relationship.
Assets: resources controlled by the business
Liabilities: obligations the business owes
Equity: the residual interest after liabilities
Why review matters
Old receivables, unreconciled cash, unexplained liabilities, or unusual equity balances can be signs that the underlying books need review.