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Needless to say, for a company to be profitable, the liabilities need to be lesser than the assets. The difference in amount shows the 'net worth' of the company. If you are new to such sheets and wondering how it is done, you can search the internet for many sheet examples. A typical company statement of financial position presents assets and liabilities in 2 different sections and the total should always balance. If the sheet does not show the same amount in both assets and liabilities, it has to be redrawn.
The balance sheet is commonly known in the financial world as statement of financial position. Each company regardless of its size will always have this document. Nowadays it is easy to prepare this particular financial document even if you do not have the basic knowledge of accounting. The internet offers many tutorial opportunities and balance sheet template you can use. All you need is to allocate a time to read and understand it.
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