Question

A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders' equity is referred to as a(n) ____.

A. profit and loss statement

B. balance sheet

C. expense report

D. income statement

E. budget report

Answer 1

A balance sheet is a financial report that itemizes a company's assets, liabilities, and stockholders' equity at a given time. It provides insights into a company's financial position and is used for decision-making.

Step-by-step explanation:

A balance sheet is a financial report that shows the financial picture of a company at a specific point in time. It itemizes the company's assets, liabilities, and stockholders' equity. The balance sheet helps in analyzing the financial health and stability of a company by providing information about what the company owns (assets), what it owes (liabilities), and the shareholders' investment (stockholders' equity).

For example, if a company has $100,000 in assets, $50,000 in liabilities, and $50,000 in stockholders' equity, the balance sheet will reflect these amounts. The balance sheet is an essential document that provides valuable insights into a company's financial position and is used by investors, creditors, and other stakeholders to assess the company's financial performance and make informed decisions.