A balance sheet item is the sum of an organization’s assets, liabilities, and equity. Assets are what a business owns and can be either tangible or intangible; liabilities are a business’s financial obligations or debts; and equity includes the capital invested in the company. Together, these items determine the net worth of an organization at any given time. Knowing how to accurately measure and manage these items is essential for any successful business, as it helps ensure that expenses don’t exceed revenue and debt remains within manageable limits. With the right combination of assets, liabilities and equity, businesses can maximize their financial stability and resilience against risks.