Question

Lucas wants to examine his company's financial position at the current moment. He is interested in what the organization owns or controls and the various sources of the funds used to pay for these assets. In this case, which financial statement is Lucas most likely to use?

Answer 1

the balance sheet

Step-by-step explanation:

Being synonymous with a company's financial position at a specific moment, a balance sheet is an essential financial statement.

On the one hand, it lists the company's assets, and on the other hand, it points out the liabilities and stockholders' equity, which are the sources of funding for the mentioned assets.

Assets refer to the things the company owns. Assets can be classified into fixed assets, inventory, receivables and cash (this is just one classification). Liabilities can be classified into short-term and long-term liabilities.

Also, the liquidity principle is applicable in terms of ordering the items in an increasing liquidity order.