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 owners' 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 summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time. It provides a snapshot of a company's financial position, showing what it owns (assets), what it owes (liabilities), and what is left over for the owners (shareholders' equity) at a particular date. It is not designed to show profitability or the costs of replacing assets or paying off liabilities.

A Balance Sheet Is Designed to Show