Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 17 - No. 10)
What is the main purpose of the balance sheet?
To summarize revenues and expenses.
To report a company's financial position at a specific point in time.
To show the cash inflows and outflows during a period.
To calculate a company's net income.
Explanation
The balance sheet provides a snapshot of what a company owns (assets), owes (liabilities), and the owners' stake (equity) at a specific time.
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