Which of the following contains a summary of the resources under the firm's control at the end of the reporting period?

A) profit and loss statement
B) balance sheet
C) statement of cash flow
D) none of the above

Question

Which of the following contains a summary of the resources under the firm's control at the end of the reporting period?

A) profit and loss statement
B) balance sheet
C) statement of cash flow
D) none of the above

Quizplus · Accepted Answer

The balance sheet shows the resources (or assets)under the firm's control and the financing of those resources at the end of the reporting period.Therefore,the balance sheet gives a snapshot of the firm's financial position at a point in time.The balance sheet has two sides.Assets include the classes of current assets (e.g.cash,inventory,accounts receivable)and non-current assets (e.g.vehicles,land and buildings,property,plant and equipment).Liabilities include the classes of current liabilities (e.g.accounts payable,short-term debt,bank overdraft)and non-current liabilities (e.g.long-term provisions,debentures,fixed debt,mortgages).Hence,liabilities include debt financing used by the company.The remaining items in the balance sheet comprise shareholders' equity,which includes share capital,reserves and retained profits.

Which of the Following Contains a Summary of the Resources