An investor wishes to assess a company's financial position at the end of the period.Which financial statement would the investor probably examine?

Question

Quizplus · Accepted Answer

The balance sheet provides information on a company's assets, liabilities, and equity at a particular point in time. This would give the investor a snapshot of the company's financial position and help them to determine whether the company is financially healthy and able to meet its financial obligations. The cash flow statement shows the sources and uses of cash during a particular period, while the income statement shows a company's revenues and expenses over a specific period of time. The statement of retained earnings shows how a company's net income is distributed among shareholders and reinvested back into the business. While these statements can be informative, they would not provide the investor with the same comprehensive view of the company's financial position as the balance sheet.

An Investor Wishes to Assess a Company's Financial Position at the End