<P> The balance sheet is the financial statement showing a firm 's assets , liabilities and equity ( capital ) at a set point in time , usually the end of the fiscal year reported on the accompanying income statement . The total assets always equal the total combined liabilities and equity in dollar amount . This statement best demonstrates the basic accounting equation - Assets = Liabilities + Equity . The statement can be used to help show the status of a company . </P>
which financial statement involves all aspects of the accounting ​ equation
The balance sheet