A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It lists the company's assets, liabilities, and equity, and shows the relationship between them.

The balance sheet is structured in a way that reflects the basic accounting equation: Assets = Liabilities + Equity. This means that the total value of a company's assets must equal the sum of its liabilities and equity.

Assets are listed in order of their liquidity, meaning that the most liquid assets (e.g. cash) are listed first, followed by less liquid assets (e.g. accounts receivable). Liabilities are listed in order of their due date, with the most immediate liabilities (e.g. short-term debt) listed first, followed by long-term liabilities (e.g. long-term debt). Equity represents the residual interest in the assets of the company after liabilities are deducted and can include common stock, retained earnings, and other reserves.

A balance sheet provides important information about a company's financial stability and its ability to meet its obligations. For example, a company with a high level of assets and low level of liabilities is generally considered to be financially stable, while a company with a high level of liabilities and low level of assets may be seen as a higher risk.

In summary, a balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It lists the company's assets, liabilities, and equity, and shows the relationship between them, providing important information about a company's financial stability and its ability to meet its obligations.