A balance sheet shows only

A balance sheet shows the financial position of a company at a particular point in time. It lists all the assets owned by the company (both fixed and current) and all the liabilities owed by the company (both short-term and long-term). The difference between the total assets and the total liabilities is the company's equity, which represents the amount of money that would be left over if all the company's debts were paid off. Therefore, a balance sheet shows both the assets and liabilities of a company.