Statement of Financial Condition

[ˈsteɪtmənt əv fəˈnænʃəl kənˈdɪʃən]

What is the definition of Statement of Financial Condition?

A financial statement that presents the assets, liabilities, and equity of an entity as of a specific date, usually accompanied by disclosures that outline the accounting principles used in its preparation. This statement is also known as a balance sheet.

Using Statement of Financial Condition in an Example

In a statement of financial condition, assets such as cash, inventory, and property are listed alongside liabilities like loans and accounts payable, with the difference representing the owners' equity, which indicates the net worth of the company at that point in time.

Using Statement of Financial Condition in a sentence

The bank requested our most recent statement of financial condition to evaluate our loan application.

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