What is the primary purpose of the statement of financial position?

Question

Quizplus · Accepted Answer

The primary purpose of the statement of financial position is to report the financial position of the reporting entity at a particular point in time. It shows the assets, liabilities, and equity of the entity, allowing stakeholders to assess its financial health and stability. It does not measure profit or report assets at their current market value. It also does not report the difference between cash inflows and outflows, which is shown in the statement of cash flows.

What Is the Primary Purpose of the Statement of Financial