The Balance Sheet The balance sheet is a snapshot of the firm's assets and liabilities at a given point in time Assets are listed in order of decreasing liquidity a Ease of conversion to cash without significant loss of value Balance Sheet Identity Assets Liabilities Stockholders'Equity3 The Balance Sheet n The balance sheet is a snapshot of the firm’s assets and liabilities at a given point in time n Assets are listed in order of decreasing liquidity § Ease of conversion to cash without significant loss of value n Balance Sheet Identity § Assets = Liabilities + Stockholders’ Equity