Which of the basic financial statements is best used to answer the questions "What does the company own and how is it financed?"
A) Balance sheet
B) Statement of shareholder's equity
C) Income statement
D) Cash flow statement

Question

Quizplus · Accepted Answer

The balance sheet shows the assets of a company (what it owns) and how those assets are financed (through liabilities and equity). Therefore, it is the best financial statement to answer the given questions.

Which of the Basic Financial Statements Is Best Used to Answer