What information can be found on a balance sheet?
A) Information to support that assets equal liabilities.
B) The profit or loss for the accounting period.
C) The reasons for changes in the cash account.
D) The financial position on a particular date; i.e. assets, liabilities and shareholders' equity.

Question

Quizplus · Accepted Answer

A balance sheet provides a snapshot of a company's financial position on a particular date by listing its assets, liabilities, and shareholders' equity. It does not show the profit or loss for the accounting period, nor does it provide information about changes in the cash account. The primary purpose of a balance sheet is to ensure that the company's assets equal its liabilities, which helps stakeholders understand the company's financial health and liquidity.

What Information Can Be Found on a Balance Sheet