Which of the following statements about a balance sheet is true?
A) A balance sheet presents the financial performance of a company for a period of time.
B) A balance sheet presents the company's financial position at a point in time.
C) A balance sheet shows which source of finance produced each asset.
D) A balance sheet includes all the resources of a company.

Question

Quizplus · Accepted Answer

A balance sheet is a financial statement that presents a company's financial position at a specific point in time, usually the end of a quarter or year. It shows the company's assets, liabilities, and equity. It does not present financial performance over a period of time, nor does it show which source of finance produced each asset. It provides a snapshot of the company's financial health at a given time.

Which of the Following Statements About a Balance Sheet Is