The Statement of Financial Position Is Frequently Referred to as

question 157

Multiple Choice

The statement of financial position is frequently referred to as

• A) an operating statement.
• B) the balance sheet.
• C) the statement of cash flows.
• D) the statement of changes in equity.

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Definitions:

Income Statement

A document detailing a corporation's financial results for a given fiscal period, including income, costs, and net profit.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating capital structure.

Financing Activities

Transactions between a business and its sources of funding, including equity and debt, reflected in the cash flow statement.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.