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A balance sheet also known as the statement of financial position is a financial statement used by businesses as a means of measuring their profits and losses. A balance sheet allows individuals inquiring into the business to determine the business’s financial position, including what it owns and what it owes. The balance sheet is a useful resource to bankers who loaned money to the businesses, to potential investors, and to the business’s management. A typical balance sheet has a designated section for the business’s assets, liabilities and ownership equity.