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-Explain the purpose of a balance sheet.

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The Answer is The purpose of a balance sheet is to provide a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and shareholders' equity, and helps stakeholders understand the company's financial health and its ability to meet its financial obligations. The balance sheet is an important tool for investors, creditors, and management to assess the company's liquidity, solvency, and overall financial performance. It also helps in making informed decisions about the company's future investments, financing, and operations. Overall, the balance sheet provides a comprehensive overview of a company's financial standing and is essential for understanding its financial position.

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