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 presents the entity's assets, liabilities, and equity. It does not show the details of how much profit was earned in the period or the cash movements that took place over a particular period, which are shown in the income statement and cash flow statement, respectively. It also does not show the change in financial position over a particular period, which is shown in the statement of changes in equity.

What Does a Statement of Financial Position Show