The balance sheet is a necessary part of any business operation, almost as important as the profit and loss statement. It is a statement listing all the following except :

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Depreciation is not listed on the balance sheet directly; instead, it is accounted for in the value of assets, reducing their value over time. The balance sheet primarily lists assets, liabilities, and equity at a specific point in time, not the depreciation expense itself, which is recorded on the income statement.

The Balance Sheet Is a Necessary Part of Any Business