The balance sheet is also known as the:
A)statement of profit and loss.
B)operating statement.
C)assets statement.
D)statement of financial position.

Question

Quizplus · Accepted Answer

The balance sheet is also known as the statement of financial position, as it reports on the financial position of a business at a specific point in time by showing its assets, liabilities, and equity. Option A is incorrect because the statement of profit and loss is also known as the income statement or statement of comprehensive income. Option B is incorrect because the operating statement is not a commonly used term for any financial statement. Option C is incorrect because while the balance sheet lists a company's assets, it also includes liabilities and equity.

The Balance Sheet Is Also Known as The