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A balance sheet:_______

A) is a statement showing an individual's or a firm's financial position at a particular point in time.
B) is a statement showing an individual's or a firm's income over a period of time.
C) is a statement listing the tax liabilities incurred by an individual or a firm.
D) can be constructed for any nonfinancial firm, but cannot be constructed for a financial firm.

1 Answer

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Answer:

A) is a statement showing an individual's or a firm's financial position at a particular point in time.

Step-by-step explanation:

A balance sheet is a list of the assets, liabilities and equity of an entity as at a particular date. A balance sheet reports the financial position of an entity as at a particular date, usually the end of a financial year.

A balance sheet is divided into two parts:

The top half of the balance sheet shows the assets of the business, with non-current assets first, and current assets below the non-current assets.

The lower half of the balance sheet shows equity, followed by liabilities. The liabilities are shown with non-current (long-term) liabilities first, and then current liabilities.

The top half of balance sheet=Lower half of the balance sheet

which means that:

Assets=Equity+Liability

Based on the above discussion, answer is A) is a statement showing an individual's or a firm's financial position at a particular point in time.

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