Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 23 - No. 2)
What does a statement of financial position (balance sheet) show?
A company's revenues and expenses for a period.
A company's cash inflows and outflows over a period.
A company's assets, liabilities, and equity at a specific point in time.
The profitability of a company.
Explanation
The balance sheet presents the financial position of a company at a specific point in time, showing what it owns (assets), what it owes (liabilities), and the owners' stake (equity).
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