Question 1

What is a balance sheet?

Accepted Answer

A snapshot at a date: assets (what the business owns), liabilities (what it owes) and equity (the owners' share). Assets must equal liabilities plus equity.

Question 2

Why doesn't my balance sheet balance?

Accepted Answer

The most common cause is missing retained earnings — accumulated past profit belongs in equity. The tool shows the exact difference so you can find the gap.

Question 3

What's the difference between current and fixed assets?

Accepted Answer

Current assets convert to cash within a year (cash, receivables, stock); fixed assets serve the business longer (equipment, furniture, vehicles). Liabilities split the same way by when they fall due.

Balance Sheet

Current assets

Fixed / non-current assets

Current liabilities

Long-term liabilities

Equity

Balance check

Terms explained