1. A balance sheet shows a company's assets, liabilities, and equity at a point in time. 2. Assets are things owned that have value, and are broken into current assets (changing daily) and non-current/fixed assets (lasting over a year). Liabilities are amounts owed, broken into current (under 1 year) and non-current (over 1 year). 3. Equity represents the total investment in the business from shareholders and retained profits. A balanced balance sheet follows the principle that total assets always equal total liabilities plus equity.