What Purpose Does the Balance Sheet Serve

question 201

Multiple Choice

What purpose does the balance sheet serve?

• A) It shows the stock price of the firm during the last year and how much fluctuation there have been in the stock price.
• B) It shows short- and long-term liquidity ratios, profitability ratios, and activity ratios.
• C) It shows a firm's financial condition on a particular date in terms of its assets, liabilities, and owners' equity.
• D) It shows investors how much profit the firm made during the last year.
• E) It shows a firm's sources and uses of cash.

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