Which aspect of business performance does the statement of financial position directly provide insight into?
A)Cash flows.
B)Profitability.
C)Share price.
D)The relative proportions of funds contributed by owners and outsiders.

Question

Quizplus · Accepted Answer

The statement of financial position, also known as the balance sheet, provides information about the relative proportions of funds contributed by owners and outsiders, also known as shareholders and creditors. This helps in analyzing the company's capital structure and its financial stability. The statement of financial position does not provide insight into cash flows, profitability, or share price.

Which Aspect of Business Performance Does the Statement of Financial