Final answer:
A balance sheet is an accounting tool that lists assets and liabilities. It provides a quick overview of a company's financial position at a specific point in time.
Step-by-step explanation:
A balance sheet is an accounting tool that lists assets and liabilities.
An asset is something of value that you own and can use to produce something. A liability is a debt or something you owe.
The net worth is the asset value minus the liability. A balance sheet is often called a "snapshot of your business" because it provides a quick overview of a company's financial position at a specific point in time.