This financial statement discloses the economic resources of the organization and the claims against those resources.

Question

Quizplus · Accepted Answer

The balance sheet provides a snapshot of an organization's financial position at a specific point in time, showing the resources (assets) the organization owns, the liabilities it owes, and the equity or ownership interest in the organization. It provides a summary of the economic resources of the organization and the claims against those resources, which is exactly what the question is asking for. The other options, such as the income statement, statement of cash flows, and statement of retained earnings, provide different types of financial information and do not provide a complete picture of economic resources and claims.

This Financial Statement Discloses the Economic Resources of the Organization