The balance sheet shows a company's resources or assets, and also shows how those assets are financed—whether that's through debt under liabilities, or through issuing equity as shown in shareholder's equity. The balance sheet provides both investors and creditors with a snapshot as to how effectively a company's management uses its resources. Just like the other financial statements, the balance sheet is used to conduct financial analysis and to calculate financial ratios. Below are a few examples of the items on a typical balance sheet.