The assets minus the liabilities of a firm reflected on the balance sheet should total

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The balance sheet represents the financial position of a company at a specific point in time, and therefore the assets (what the company owns) should be equal to the liabilities (what the company owes), resulting in zero. This is known as the accounting equation: Assets = Liabilities + Equity. The balance sheet does not take into consideration profits or pro forma predictions, and while it does include current liabilities, it also includes non-current or long-term liabilities.

The Assets Minus the Liabilities of a Firm Reflected on the Balance