Which of the following statements about a balance sheet is TRUE?
A) A balance sheet presents the financial performance of a company for a period of time.
B) A balance sheet presents the company's financial position at a point in time.
C) A balance sheet shows which source of finance produced each asset.
D) A balance sheet shows the profit for the period.

Question

Quizplus · Accepted Answer

A balance sheet is a financial statement that reports the company's assets, liabilities, and equity at a specific point in time. It provides a snapshot of the financial position of an organization, and it helps in assessing the liquidity and solvency of a company. It does not show the financial performance for a period of time or the sources of finance for each asset. It also does not show the profit for the period, as that is shown on the income statement.

Which of the Following Statements About a Balance Sheet Is