A balance sheet is a financial statement that presents the financial position of a business enterprise at a particular point of time. It shows what the business owns and what it owes, and the residual interest of the owners in the business. It is prepared on a specific date, usually at the end of the accounting period, and is based on the fundamental accounting equation: Assets = Liabilities + Equity. Thus, the balance sheet provides a snapshot of the resources controlled by the entity, the obligations it has to outsiders, and the claims of the owners. It plays a vital role in accountancy and financial management because it helps in assessing liquidity, solvency, capital structure, and overall financial stability. The items appearing in a balance sheet are broadly classified into three main categories: Assets, Liabilities, and Equity (or Shareholders’ Funds). Each of these categories is further subdivided into various components based on their nature and time horizon. Assets are the economic resources owned or controlled by the business as a result of past transactions and from which future economic benefits are expected to flow. Assets are generally classified into Non-Current Assets and Current Assets. Non-Current Assets, also known as Fixed Assets or Long-term Assets, are those assets that are held for long-term use in the business and are not intended for sale in the ordinary course of business. They provide benefits for more than one accounting period. These include tangible and intangible assets. Tangible non-current assets are physical in nature, such as land, buildings, plant and machinery, furniture, vehicles, and equipment. For example, a manufacturing company may show plant and machinery valued at cost less accumulated depreciation. Intangible non-current assets do not have physical substance but have economic value, such as goodwill, patents, trademarks, copyrights, and software. For instance, goodwill arising on acquisition of another company appears as an intangible asset