A balance sheet includes a summary of a business’s assets, liabilities, and capital. Learn what a balance sheet should include and how to create your own.

Here, CNBC Select explains what a balance sheet is, how to create one and how it can be useful to both companies and individuals.

How dubious is this asset? Assets are organized on the left hand side of the balance sheet according to their ease, and these allegedly, according to their ease of conversion into cash.

A balance sheet doesn’t predict future health, but comparing previous balance sheets can provide insight into changes in the company’s fortunes.