The Balance Sheet gives a snapshot of the organization's financial health at a specific time. In general, the organization's total assets should be greater than its total liabilities, or it cannot long survive. The kinds of assets and liabilities an organization has also affect its financial health. Otherwise, the organization may face solvency problems. On the other hand, if an organization's cash and equivalents greatly exceed its current liabilities, the organization may not be putting its money to the best use.
Financial health is only one criterion for evaluating an organization.
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