Can You Briefly Discuss On Balance Sheet?

Balance Sheet:
The following facts about balance sheet are also going to help us in understanding the financial statements analysis process.
1. A balance sheet is a 'static snapshot' at one point in time (therefore the consolidated data available is vulnerable to inventory and cash swings, i.e., if the balance sheet of a firm is showing low inventory and high cash position at the year ending when the balance sheet is prepared, the company may buy excessive inventory against cash the very next day. The balance sheet prepared a day earlier would not report the new transaction and the latest financial position of the company.)
2. Balance sheet items or accounts are 'permanent accounts' that continue to accumulate from one accounting cycle to the next.

3. Balance sheet items are recorded on historical cost basis, i.e., the balance sheet neglects any increase in value of assets resulting from inflation and reports assets and liabilities at their book value. It is a big limitation for financial analysts, since a useful analysis could only be made by considering the assets and liabilities at their market value rather than book value.  
4. Constant Rupee Approach: In constant rupee approach, two balance sheets of the same company for different times are compared at a specific time and inflationary adjustments are made.

Simply a balance sheet is the snap shot of a business financial picture. The format of balance sheet is such that at the top there is heading which consist of three things that is name of the business, the name of the financial statement i.e. Balance Sheet and the date. In the table of the balance sheet we have assets, liabilities and owner's equity which are the major parts of the balance sheet. We have further divisions in these parts. Simply, assets represent anything valuable for a business and can be expressed in monetary terms. The asset side shows the details of the current assets and fixed assets. Current assets are such assets which have life less than one year or at most one year and fixed assets represents the assets whose life is more than one year. On the other hand the liabilities side shows the liabilities on the business. Liabilities are those past transactions that require settlement in future period of time. Owner's Equity part come under the liability side and it shows the amount of capital invested by the owner or owners of the business. The owner's equity is equal to the assets minus liabilities. The balance sheet shows the financial picture of the business on that specific date on which it was made.