Which of the following statements best describes the balance sheet?
A)It provides information about the financial position of an entity at a specific point in time.
B)It measures the economic performance of the entity over a period of time.
C)It summarizes only the changes to retained earnings during a period.
D)It shows how an entity managed its cash during the reporting period.

Question

Quizplus · Accepted Answer

The balance sheet provides information about the financial position of an entity at a specific point in time. It presents an overview of an entity's assets, liabilities, and equity as of a particular date. It does not measure the economic performance of the entity over a period of time, summarize only changes to retained earnings, or show how an entity managed its cash during the reporting period.

Which of the Following Statements Best Describes the Balance Sheet