Debt And Equity
A balance sheet is a quick picture of the financial condition of a business at a specific period in time. The activities of a business fall into two separate groups that are reported by an accountant. There are also financing and investing activities that include securing money from debt and equity sources of capital, returning capital to these sources, making distributions from profit to the owners, making investments in assets and eventually disposing of the assets. Profit making activities are reported in the income statement; financing and investing activities are found in the statement of cash flows. But they're generally prepared at the end of each month, quarter and year. It's always prepared at the close of business on the last day of the profit period.
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