The statement that measures an entity's financial position is the:
A) statement of changes in equity.
B) statement of cash flows.
C) balance sheet.
D) income statement.

Question

Quizplus · Accepted Answer

The balance sheet provides information on an entity's assets, liabilities, and equity, which is used to determine its financial position at a specific point in time. The other statements provide information on an entity's financial performance over a period of time (income statement) and its cash flows (statement of cash flows) but do not necessarily provide a snapshot of their financial position. The statement of changes in equity only provides information on changes in equity over a period of time.

The Statement That Measures an Entity's Financial Position Is The