There are some characteristics of the balance sheet that we can immediately say. First of all, the balance sheet represents a point in time. It tells me the company's assets as a point in time, the company's liabilities as a point in time and the company's equity at a point in time. Next up, given all of those, it thus describes the company's financial position and you might also notice that the assets must equal liabilities and equity. Now, why is this? Well, first of all, the company needs a source of funding and the source of funding is your liabilities and equity. Great. We've got some cash from somewhere. What did we do with that funding? We used it to buy assets. So the two sides must equal if your sources of funding equal your uses of funding. Now, given assets equals liabilities plus equity, it must always balance and every balance sheet will always balance. If they didn't balance, accountants around the world would be going to bed, having nightmares. So we have to make sure that this balances.