Accounting for IGCSE & O level - Final Statements (Section 14 - No. 27)
What is the main purpose of the statement of financial position?
To report a company's financial performance.
To report the changes in cash flows.
To show a company's financial condition at a specific point.
To predict future profits.
Explication
The statement of financial position, also known as the balance sheet, presents a company's assets, liabilities, and equity at a single point in time.