Which of the following statements is considered a "snapshot" of the business in financial or dollar terms?
A)Statement of financial position.
B)Statement of cash flows.
C)Income statement.
D)The federal income tax return.

Question

Quizplus · Accepted Answer

The statement of financial position, also known as the balance sheet, provides a snapshot of a company's financial position at a specific point in time by reporting its assets, liabilities, and equity. This statement provides a clear picture of the company's financial health at a specific moment. The other options do not provide this snapshot in the same way - the statement of cash flows shows the company's inflows and outflows of cash over a period of time, the income statement reports revenues and expenses for a period of time, and the federal income tax return is a legal document submitted to the government that reports the company's taxable income and related obligations.

Which of the Following Statements Is Considered a "Snapshot" of the Business