A balance sheet is designed to show:
A) How much a business is worth.
B) The profitability of the business during the current year.
C) The assets, liabilities, and equity of a business as of a particular date.
D) The cost of replacing the assets and of paying off the liabilities at December 31.

Question

Quizplus · Accepted Answer

A balance sheet is a financial statement that shows the assets, liabilities, and equity of a business as of a particular date. It provides a snapshot of the company's financial position at a given point in time. It does not show the profitability of the business during the current year or the cost of replacing the assets and paying off the liabilities at a specific date. The balance sheet helps investors and analysts to evaluate the company's liquidity, solvency, and financial performance.

A Balance Sheet Is Designed to Show