The primary source of information about an entity's financial position is to be found in its statement of:
A) cash flows.
B) changes in equity.
C) financial position.
D) profit or loss and other comprehensive income.

Question

Quizplus · Accepted Answer

The statement of financial position, also known as the balance sheet, provides information about an entity's financial position at a specific point in time, including its assets, liabilities, and equity. The other statements listed (cash flows, changes in equity, and profit or loss and other comprehensive income) provide information about the entity's financial performance over a period of time, but do not provide as comprehensive of a snapshot of its financial position as the statement of financial position.

The Primary Source of Information About an Entity's Financial Position