The current financial position of your company speaks volumes on how well your business performed. It also provides more information on your company’s ability to pay off debts and its potentials as a good investment. More than anything else, a balance sheet, together with the income statement and the cash flow statements, are the pillars of your financial statements. These are but some of the reasons understanding the structure of a balance sheet is indispensable not only for business owners but also for investors and other stakeholders.