Which aspect of business performance does the balance sheet directly provide insight into?
A) profitability
B) share price
C) cash flows
D) the relative proportions of funds contributed by owners and outsiders

Question

Quizplus · Accepted Answer

The balance sheet provides information about the relative proportions of funds contributed by owners (in the form of equity) and outsiders (in the form of liabilities). It does not directly provide insight into profitability, share price, or cash flows, although those aspects can be indirectly influenced by the balance sheet.

Which Aspect of Business Performance Does the Balance Sheet Directly