ENTREPRENEURSHIP

Detailed explanation-1: -The statement of financial position is another term for the balance sheet. The statement lists the assets, liabilities, and equity of an organization as of the report date. As such, it provides a snapshot of the financial condition of a business as of a specific date.

Detailed explanation-2: -A statement of financial position is a financial statement that summarises a company’s assets (what it owns), liabilities (what it owes), and equity (assets less liabilities) on a particular date – usually at the end of a financial month or financial year.

Detailed explanation-3: -A statement of financial position or balance sheet gives a broad overview of a company’s financial position considering its assets and liabilities. For example, as per the 2021 annual report of Amazon. Inc, the company’s balance sheet shows that it holds assets worth $420, 549 and liabilities worth $142, 266.

Detailed explanation-4: -A financial statement is the combination of the three major reports on a business. It will contain the cash flow statement, the income statement and the balance sheet of the business. All three together produce an overall picture of the health of the business.

Detailed explanation-5: -Answer and Explanation: Balance sheet is also known as the statement of financial position because it provides the accurate details of the company’s assets and liabilities which then help the shareholders or creditors for constructive and productive decision making.