A balance sheet is a financial statement that lists assets, liabilities, and equity. These items must show a net balance of zero for the balance sheet to be considered "balanced." This means that for every entry into an asset account, there must be a corresponding entry into either a liability or an equity account. Since asset accounts increase by debits, this means that either the liability or the equity accounts must be credited when new assets are purchased. Likewise, when assets are sold or gotten rid of in some way, there would be a credit in the assets account to reduce it. There would have to be a corresponding debit in the liability or equity accounts to balance this. This is the basis of balance sheet accounting.
Another option in the disposition of an asset is that the asset is sold for cash and it is a wash within the assets. A simple example of balance sheet accounting is that a car is sold and therefore the automobile account is reduced by credit. However, cash was received was an increase in another asset, cash. Therefore, the cash account would be debited and total assets would remain unchanged. This happens quite often with short-term investments, and it is rarely noticed or noted.
Sometimes it is helps to wrap your mind around balance sheet accounting to look at it from the stand point of a liability or the equity accounts. Say a liability is paid down or equity is purchased. This would be a debit to either of these accounts. There had to be an asset outlay for either of these events to happen, probably and outlay of cash. This would be a credit to the asset account and the balance sheet would be balanced. Though this is a simplistic view, it gets the point across.
Since investments are considered assets, they are treated the same way. Investments are listed in order from shortest term, or most liquid, to longest term, or least liquid. They are also listed by the percentage of ownership owned. For example, if an investor own fifty percent of a business, that business is listed under assets, and there is a denotation with it that says fifty percent, or fifty percent owned, or some other version of the same thing. This is so that there is full disclosure for any users of the financial statement. Thus, investments have a huge impact on balance sheet accounting.For more information on investing in investment opportunities usually or