Which one of the following statements is true?
A) The statement of comprehensive income shows the financial position of an entity as of a specific date.
B) The statement of comprehensive income shows the financial position of an entity for a specific period of time.
C) The balance sheet shows the financial position of an entity at a specific date.
D) The balance sheet shows the financial position of an entity for a specific period of time.

Question

Quizplus · Accepted Answer

The balance sheet, also known as the statement of financial position, is a snapshot of the financial position of an entity on a specific date, showing its assets, liabilities, and equity. Option A and B refer to the statement of comprehensive income, also known as the income statement, which shows the financial performance of an entity over a specific period of time. Option D is incorrect as the balance sheet is not a statement for a specific period of time but rather a representation of the financial position on a specific date.

Which One of the Following Statements Is True