A balance sheet is designed to show the financial position of an entity:
A) At a single point in time.
B) Over a period of time such as a year or quarter.
C) At December 31 of the current year.
D) At January 1 of the coming year.

Question

Quizplus · Accepted Answer

A balance sheet represents the financial position of an entity at a specific point in time, typically the end of the accounting period. It is not designed to show financial positions over a period of time or specific dates.

A Balance Sheet Is Designed to Show the Financial Position