Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 16 - No. 6)
What is the primary purpose of the statement of financial position (balance sheet)?
To report a company's revenues, expenses, and net income over a period.
To show a company's financial position at a specific point in time.
To track a company's cash inflows and outflows.
To show the changes in owner's equity.
Explanation
The statement of financial position provides a snapshot of a company's assets, liabilities, and equity at a specific point in time.
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