Final answer:
A company's balance sheet provides critical information about its financial and liquidity solvency. It lists all assets and liabilities, showing the company's ability to meet both short-term obligations and ensure long-term stability.
Step-by-step explanation:
The balance sheet provides useful information about a company's financial and liquidity solvency. A balance sheet is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders. It's an essential tool for assessing a company's financial health, including its ability to meet short-term obligations and long-term viability. Assets, which are resources owned by the company, can include cash, inventory, property, and more, while liabilities are obligations that the company must fulfill, such as loans, mortgages, and other debts. The difference between the total assets and total liabilities is known as net worth or bank capital when referring to a bank's balance sheet.