Question

Suppose you want to know how much a company owes others. Which standard financial statement would you use? Select one: a. Balance sheet b. Break-even analysis c. Cash flow statement d. Income statement

Answer 1

balance sheet

Explanation

In simple words, balance sheet refers to the type financial statement that is prepared by an organisation for depicting its financial position at a particular point of time, generally at the end of the year.

Balance sheet is of high importance to the stakeholders as it depicts all the assets in one group and all the liabilities and capital sources in other group. It depicts how much of the assets are financed with the capital and how much are taken on loans.

Thus, from the above we can conclude that the correct option is Balance sheet.