BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income Statement
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Balance Sheet
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Statement of Owner’s Equity
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Statement of Cash Flows
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Detailed explanation-1: -Summary. The balance sheet (also referred to as the statement of financial position) discloses what an entity owns (assets) and what it owes (liabilities) at a specific point in time.
Detailed explanation-2: -Overview: The balance sheet-also called the Statement of Financial Position-serves as a snapshot, providing the most comprehensive picture of an organization’s financial situation. It reports on an organization’s assets (what is owned) and liabilities (what is owed).
Detailed explanation-3: -Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how much money a company made and spent over a period of time.
Detailed explanation-4: -Liabilities. A liability is any money that a company owes to outside parties, from bills it has to pay to suppliers to interest on bonds issued to creditors to rent, utilities and salaries. Current liabilities are due within one year and are listed in order of their due date.
Detailed explanation-5: -The balance sheet shows what the company owns (assets such as cash, accounts receivable and equipment) and what the company owes (liabilities such as accounts payable and loans).