Which of the following statement is considered as the accountant's snapshot of firm's accounting value as of a particular date?
Correct answer: B. Balance Sheet
- A. Income Statement
- B. Balance Sheet
- C. Cash Flow Statement
- D. Retained Earning Statement
Explanation
The balance sheet is a point-in-time statement showing the firm’s assets, liabilities, and owners’ equity. An income statement and cash flow statement cover activity over a period rather than providing a date-specific snapshot.
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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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