BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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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 cash flows
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cash receipts journal
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Detailed explanation-1: -A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholder equity. The balance sheet is one of the three core financial statements that are used to evaluate a business.
Detailed explanation-2: -Statement #2: The balance sheet It’s called a balance sheet because both sides of the equation must balance: assets equal liabilities plus stockholders’ equity. The balance sheet displays: The portion of those assets financed with debt (liability) The portion of equity (retained earnings and stock shares)
Detailed explanation-3: -Balance sheet Based on the basic accounting equation, or balance sheet equation [Assets = Liabilities + Equity], the balance sheet provides a snapshot of a business’s assets, liabilities, and equity.
Detailed explanation-4: -The balance sheet provides information on a company’s resources (assets) and its sources of capital (equity and liabilities/debt). This information helps an analyst assess a company’s ability to pay for its near-term operating needs, meet future debt obligations, and make distributions to owners.