human
I'm having a hard time understanding the concept of a balance sheet?
assistant
Balance sheets are used to show the financial position of a company at a specific point in time. It includes assets, liabilities, and shareholders' equity. Assets are things like cash, investments, and inventory. Liabilities include debt such as loans and accounts payable. Shareholders' equity is calculated by subtracting liabilities from total assets. The goal of a balance sheet is to provide information about a company's financial health so that investors can make informed decisions when deciding whether or not to invest in the business.