Investment Dictionary

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Investment Dictionary - Balance sheet

The financial statement of a business or instittution that lists the assets, debts, and owner's investment (or equity) as of a specific date. Assets are listed in the order of how soon they will or could be converted into cash, and debts in teh order of how soon they must be paid. Since balance sheets do not list items at their current monetary value, but rather in historical dollars and cents (the amount paid at the time of purchase), they may greatly overstate or understate the real value of certain corporate assets and liabilities.














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