What Is the Primary Purpose of the Statement of Financial

question 87

Multiple Choice

What is the primary purpose of the statement of financial position?

• A) To measure the profit of a business up to a particular point in time.
• B) To report the difference between cash inflows and cash outflows for the period.
• C) To report the financial position of the reporting entity at a particular point in time.
• D) To report assets at their current market value at a particular point in time.

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Definitions:

Grassroots Organization

Community-based groups that aim to bring about social, political, or environmental changes from the bottom up, relying on the active participation of its members.

501(c)(3) Nonprofit

A classification by the IRS for non-profit organizations that are exempt from federal income tax, typically charitable, religious, educational, or scientific organizations.

Health-Care Facility

A place that provides health care services, such as hospitals, clinics, outpatient care centers, and specialized care centers.

Internal Communications

The practice of effectively disseminating information, sharing ideas, and fostering dialogue within an organization.