A Formal Statement of the Assets, Liabilities, and Owner's Equity

question 24

Multiple Choice

A formal statement of the assets, liabilities, and owner's equity of a business at a specified date is known as a(n)

• A) balance sheet.
• B) income statement.
• C) statement of owner's equity.
• D) statement of cash flows.

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Definitions:

Unusual

Refers to events or transactions that are infrequent, unexpected, or uncommon in the normal course of business operations.

Infrequent

Occurring or happening rarely or at wide intervals.

Extraordinary Item

An unusual or infrequent event that is not part of the normal activities of a business and must be reported separately in the financial statements.

Discontinued Operations

Parts of a company's core business or subsidiaries that have been sold, disposed of, or abandoned and are reported separately from continuing operations in financial statements.