Question

Argon Inc., a textile company, installed new equipment in its factory two years ago. This increased the production rate. The chief executive officer of Argon wants to determine the current assets and liabilities of the company. The financial report that can provide this information is the _____.

A) cash flow statement
B) financial ratio report
C) balance sheet
D) income statement

Answer 1

Answer: (C) Balance sheet

Step-by-step explanation:

In the business, a balance sheet is basically refers to the sate of the financial position of an organization in the market as it include the liabilities, asset and the owner equity of the company. In the balance sheet, the total income statement is also shows with the net income for the specific duration.

The main purpose of the balance sheet is that it to reveal the overall financial status of an organization and the total investment in the business.

According to the question, the financial report provided the current assets and also re liabilities of the company this is known as the balance sheet.

Therefore, Option (C) is correct.