The financial statement that summarizes the financial position of a company is the
A) income statement.
B) balance sheet.
C) operating statement.
D) retained earnings statement.

Question

Quizplus · Accepted Answer

The balance sheet summarizes the financial position of a company as at a specific point in time, showing the company's assets, liabilities, and equity. The income statement summarizes the company's revenue and expenses over a period of time (usually a year), while the operating statement typically refers to a specific section of the income statement that focuses on the company's operating activities. The retained earnings statement shows the amount of net income that the company has kept (retained) and reinvested in the business.

The Financial Statement That Summarizes the Financial Position of a Company