Balance Sheet Basics
What does that final section of your balance sheet mean? This final Equity section will vary depending on the type of entity your business is set up as. To put it simply: Assets - Liabilities = Equity
Keep in mind that your balance sheet represents one date in time. The figures represent balances, and since the balances change daily, a balance sheet only represents one point in time. This contrasts with your income statement, which covers a period of time and has a “from”