The financial statement that represents activity over the entire life of the company is the:
A)Income statement.
B)Balance sheet.
C)Statement of financial accounting.
D)Statement of cash flows.

Question

Quizplus · Accepted Answer

The balance sheet represents the financial position of the company at a specific point in time and includes all assets, liabilities, and equity. It reflects the activity of the entire life of the company as it takes into account all past financial transactions and the current financial position of the company. The income statement represents the financial performance of the company over a period of time, typically a year, and shows the revenues and expenses incurred during that period. The statement of financial accounting and statement of cash flows are not commonly used financial statements.

The Financial Statement That Represents Activity Over the Entire Life