Balance Sheet

The balance sheet is a financial statement listing all the assets of the company, the liabilities of the company and the stockholders’ equity of the company.

If a company’s assets total $100,000 and their liabilities total $60,000 that means that 60% of the company (60,000/ 100,000) is owned by creditors and 40% by the owners. The smaller the portion owned by creditors, the more likely the company will be able to survive in hard times.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/balance-sheet/