The balance sheet reflects the results of the operations of a firm over a specified period of time.

Question

Quizplus · Accepted Answer

The balance sheet is a snapshot of a firm's financial position at a specific point in time, and does not reflect the results of operations over a specified period of time. The income statement, on the other hand, reflects a firm's financial performance over a specified period of time (usually a quarter or a year).

The Balance Sheet Reflects the Results of the Operations of a Firm