An accounting document which provides a snapshot of the financial picture of a business on a given day. One side of the balance sheet lists the assets, moving from most liquid (cash) to least liquid (plant and equipment or goodwill (www.practicallaw.com/A36218)). The other side of the balance sheet lists liabilities in order of immediacy. In a company’s balance sheet, the assets must equal the liabilities plus shareholders’ equity. The balance sheet, along with the profit and loss account (www.practicallaw.com/A36715), is an important tool for analysing the financial health of a company.