The balance sheet:
A) indicates financial performance over a period of time
B) shows the relationship between receipts and payments
C) reflects changes in the assets and liabilities over a period of time
D) presents the financial position at a point in time.

Question

Quizplus · Accepted Answer

The balance sheet presents the financial position of a company at a specific point in time. It shows the assets, liabilities, and equity of the company on that particular date. It does not indicate financial performance over a period of time, nor does it show the relationship between receipts and payments. It simply reflects the company's financial position at one specific moment.

The Balance Sheet