A statement of financial position shows:
A) the financial position at the end of the period.
B) the cash movements that took place over a particular period.
C) details of how much profit was earned in the period.
D) the change in financial position over a particular period.

Question

Quizplus · Accepted Answer

A statement of financial position, also known as a balance sheet, shows the financial position of an entity at a specific point in time, typically at the end of a period. It presents the assets, liabilities, and equity of the entity and helps users understand the financial health and stability of the business. It does not show cash movements or details of profit earned during the period. It shows the financial position as of a specific point in time, rather than the change in financial position over a period.

A Statement of Financial Position Shows