BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It shows sources and uses of cash for a period
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It is an expansion of Assets-Liabilities = Owners Equity
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It is sometimes referred to as a statement of financial position
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It is not necessary if you have an income statement and cash flow
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Detailed explanation-1: -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-2: -The correct answer is d. A balance sheet is a statement that provides information regarding the assets and liabilities of a company. Internally generated assets are not recorded in the balance sheet under US GAAP.
Detailed explanation-3: -A company’s balance sheet, also known as a “statement of financial position, ” reveals the firm’s assets, liabilities, and owners’ equity (net worth). The balance sheet, together with the income statement and cash flow statement, make up the cornerstone of any company’s financial statements.
Detailed explanation-4: -Answer and Explanation: The correct answer is option b) The balance sheet reports the assets, liabilities, and stockholders’ equity at a specific date. A balance sheet, also known as the statement of financial position, shows all the assets, liabilities and owner’s equity of the business at a specific period of time.
Detailed explanation-5: -A balance sheet is a financial statement that contains details of a company’s assets or liabilities at a specific point in time. It is one of the three core financial statements (income statement and cash flow statement being the other two) used for evaluating the performance of a business.