Which financial statement shows the financial picture of the organization on a given day?
A) Income statement
B) Statement of financial position/Balance sheet
C) Statement of retained earnings
D) Statement of cash flows

Question

Quizplus · Accepted Answer

The statement of financial position, also known as the balance sheet, shows the financial position of the organization on a specific day. It includes assets, liabilities, and equity, providing a snapshot of the organization's financial health at the end of a given period. The income statement shows the organization's revenue, expenses, and net profit or loss over a specific period of time, while the statement of retained earnings shows changes in the organization's retained earnings over time. The statement of cash flows details the organization's cash inflows and outflows over a specific period, providing information on how the organization generates and uses cash.

Which Financial Statement Shows the Financial Picture of the Organization