Which financial statement reports a company's assets, liabilities and equity at a specific date?
Correct answer: C. Balance sheet
- A. Income statement
- B. Statement of cash flows
- C. Balance sheet
- D. Statement of retained earnings
Explanation
The balance sheet presents the accounting equation, showing assets, liabilities and equity at a particular date. The income statement reports performance over a period, while the cash flow statement reports cash movements.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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