Question

Which financial statement reports assets, liabilities, and owner's equity as of the last day of the period?

1) Income Statement
2) Balance Sheet
3) Statement of Cash Flows
4) Statement of Retained Earnings

Answer 1

The financial statement that lists a company's assets, liabilities, and owner's equity as of the last day of a period is the Balance Sheet, which showcases the company's financial condition at a specific point in time.

Step-by-step explanation:

The financial statement that reports a company's assets, liabilities, and owner's equity as of the last day of the period is called the Balance Sheet. The Balance Sheet is a fundamental accounting tool that provides a snapshot of what the company owns and owes, as well as the amount invested by the shareholders. On a bank's balance sheet, assets might include cash held in vaults or at the Federal Reserve, loans made to customers, and bonds. Liabilities could comprise customer deposits and debts to other institutions. A bank's net worth (or bank capital) is calculated as the difference between its assets and liabilities.