Question

A firm's financial statements are generally assumed to include its income statement and balance sheet. Which of the following piece of information is provided by a firm's balance sheet? A. Taxes. B. Revenues. C. Liabilities. D. Costs. E. Profit

Answer 1

Answer: Liabilities

Explanation: The Balance sheet which is also known as the statement of financial position represent or shows an entity financial position at a single point in time. That is, it shows the Owners equity(capital), Liabilities and Assets of a firm for a financial period, usually a year.

On the other hand, the income statement shows and entity profitability over a period of time