Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 23 - No. 23)
What is the primary purpose of preparing a statement of financial position (balance sheet) for a partnership?
To determine the partnership's net income.
To show the financial position of the partnership at a specific point in time.
To report the partnership's cash flow activities.
To allocate profits among the partners.
Explanation
The statement of financial position provides a snapshot of a partnership's assets, liabilities, and equity at a given date.
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