Which statement about financial statements is correct?

Question

Quizplus · Accepted Answer

The balance sheet provides information about a firm's financial position at a specific point in time by reporting its assets, liabilities, and equity. It does not show a picture of the firm's financial position over time, only at a single point. The income statement, on the other hand, shows a firm's financial performance over a period of time by outlining its revenues, expenses, and profits. The statement of cash flows provides information about a firm's cash inflows and outflows for a given period, while the statement of cash needs is not a common financial statement.

Which Statement About Financial Statements Is Correct