Assets: Assets are anything that has future economic value. In addition to tangible assets such as building, machine, furniture, cash, stock etc. it also includes intangible assets such as goodwill, preliminary expenses, prepaid expenses etc.
Liabilities: Liabilities are those obligations which are used to fund the operations of a business. It includes capital, bank loans, accounts payable, outstanding expenses etc.
Balance Sheet: A balance sheet or statement of financial position is a summary of the financial condition of a sole proprietorship, a business partnership or a company. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a "snapshot of a company's financial condition".
Profit & Loss Account: A Profit and Loss Account (also referred to as Income Statement, Statement of Financial Performance, Earnings Statement, Operating Statement or Statement of Operations) is a company's financial statement which displays the revenues recognized for a specific period, and the cost and expenses charged against these revenues. The purpose of the income statement is to show whether the company made or lost money during the period being reported.
