A balance sheet provides a snapshot of a business's financial position by listing assets, liabilities, and equity. Assets are things owned that have monetary value, including current assets like cash, accounts receivable, and inventory, as well as long-term assets like property, equipment, and investments. Liabilities are debts owed, including current liabilities payable within a year like accounts payable and taxes, as well as long-term notes. Equity represents the owner's claim and must equal total assets minus total liabilities to balance.