The Balance Sheet can be used as:
A)A statement to determine the business's solvency
B)A statement to determine the business's economic potential
C)A statement of accountability
D)All of the above

Question

Quizplus · Accepted Answer

The Balance Sheet provides information about a business's solvency by showing the relationship between assets and liabilities. It also shows the business's economic potential by providing information about assets such as investments and inventory. Additionally, it is a statement of accountability because it shows the current financial status of the business. Therefore, all of the choices are correct.

The Balance Sheet Can Be Used As