The Balance Sheet gives information regarding the____________?

Correct answer: D. Financial position as on a particular date

  • A. Results of operations for a particular period
  • B. Financial position during a particular period
  • C. Profit earning capacity for a particular period
  • D. Financial position as on a particular date

Explanation

A balance sheet is a point-in-time statement, so it reports assets, liabilities and capital as on a specific date. Results of operations for a period are reported by the Profit and Loss Account.

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About Financial Statements

Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.

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