The Purpose of the Balance Sheet Is

question 30

Multiple Choice

The purpose of the balance sheet is:

• A) to list the assets of the business and the claims against the assets at a particular point of time.
• B) to determine the cash inflows and outflows over a period of time.
• C) to determine the profit earned over a period of time.
• D) all of the above.

---

Definitions:

Fiscal Year

A government's or organization's financial year used for accounting purposes, which may not necessarily align with the calendar year.

Multiplier

In economics, a factor by which a change in spending will be magnified in the overall economy, affecting output and income levels.

MPC

Marginal Propensity to Consume, which measures the proportion of additional income that an individual spends on consumption.

Aggregate Demand

The complete appetite for goods and services in an economy, marked by an overarching price level throughout a specified duration.