The primary purpose of the balance sheet is to reflect
A) the firm's potential for growth in stock values in the stock market.
B) items of value, debts, and net worth.
C) the value of items owned by the firm.
D) the status of the firm's assets in case of forced liquidation of the firm.

Question

Quizplus · Accepted Answer

The primary purpose of the balance sheet is to provide a snapshot of a company's financial condition at a specific point in time, including its assets (items of value), liabilities (debts), and shareholders' equity (net worth).

The Primary Purpose of the Balance Sheet Is to Reflect