A balance sheet:
A) lists the assets and liabilities at present replacement cost.
B) shows how the resources of an entity change during a period of time.
C) shows all facts affecting the financial position of the entity.
D) lists the assets, liabilities and shareholders' equity at a specific point in time.

Question

Quizplus · Accepted Answer

A balance sheet lists the assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the financial position of an entity. It does not show present replacement cost or changes during a period of time, although it can capture events that have affected the financial position of the entity up to that point in time.

A Balance Sheet