“Balance Sheet” is a Financial Statement that refers to a company’s Valuation or financial position on a specific date by reporting its Assets, Liabilities, and Stockholders’ Equity. In a Balance Sheet, the company’s Assets should equal the sum of its Liabilities and Stockholders’ Equity.

The Balance Sheet differs from an Income Statement in that it provides a snapshot of a company’s Valuation or financial position on a particular date, rather than its financial performance over time.

The Balance Sheet is often used in M&A transactions to determine any applicable Purchase Price Adjustment.