A company's bank would like information about the amount of money owed to creditors.Which financial statement will the company give to the bank?
A) balance sheet
B) income statement
C) statement of cash flow
D) operating income

Question

Quizplus · Accepted Answer

The balance sheet provides a snapshot of a company's financial position at a specific point in time, including its assets, liabilities, and equity. The amount owed to creditors would be listed under liabilities on the balance sheet, making it the best choice for providing this information to the bank. The income statement shows a company's revenue and expenses over a period of time, the statement of cash flows shows the flow of cash in and out of a business, and operating income is a measure of a company's profitability from its core operations. While these statements may provide some information about a company's debt obligations, the balance sheet is specifically designed to provide a full picture of a company's financial position, making it the best choice for answering the bank's request for information about the amount owed to creditors.

A Company's Bank Would Like Information About the Amount of Money