Which of the following documents describes the financial position of a company on a specified date, showing its assets and reserves and what it owes (i.e. its liabilities)?
A) Budget
B) Balance sheet
C) Cash flow statement
D) Income statement
E) Profit and loss statement

Question

Quizplus · Accepted Answer

A balance sheet describes the financial position of a company on a specific date by outlining its assets, liabilities, and reserves. A budget is a projection of expected revenues and expenses, while a cash flow statement shows the inflow and outflow of cash over a period of time. An income statement or profit and loss statement shows a company's revenues, expenses, and net income or loss over a period of time, such as a month or year.

Which of the Following Documents Describes the Financial Position of a Company