The Balance Sheet of a business possesses the following characteristics:

• Balance sheet being a statement has no 'debit' or 'credit' sides that is why 'To' or 'By' words are not prefixed to the name of accounts.
• Balance sheet is prepared at the end of an accounting period - it is for a particular day, so it disclose the financial position on a particular day and not for a particular period.
• Balance sheet disclose how much business owes to others and how much others owe to business.
• The total of 'Assets' an 'Liabilities' sides are always equal.