QUESTION 26 Why is a balance sheet is called a balance sheet in the first place? Because the valuation of the assets is alwaysin the balance, meaning that the true valuation of those assets is difficult to ascertain over time and is therefore always in flux. The term "balance sheet" comes from ancient Latin, where a balancitus represented the joint ownership of commercial assets used in a business venture among two or more partners. O It is called a balance sheet because valuing assets is a "balancing act" that requires as much art as science and perhaps because juggling sheet" does not sound business-like). O It is called a balance sheet because the assets (what the firm owns) must always equal (or "balance") with the sum of the liabilities (what the firm owes) and the equity (the residual value of the assets, net of the liabilities)