What does a statement of financial position show?
A)the details of how much profit was earned in the period
B)the cash movements that took place over a particular period
C)the financial position at the end of the period
D)the change in financial position over a particular period

Question

Quizplus · Accepted Answer

A statement of financial position, also known as a balance sheet, shows the financial position of an entity at a specific point in time. It includes a list of assets (what the entity owns), liabilities (what the entity owes), and equity (the remaining value after liabilities are subtracted from assets). It does not show how much profit was earned or cash movements over a period, nor does it show the change in financial position over a period.

What Does a Statement of Financial Position Show