Which Financial Statement Reports an Organization's Financial Position at a Single

question 221

Multiple Choice

Which financial statement reports an organization's financial position at a single point in time?

• A)Income statement.
• B)Balance sheet.
• C)Statement of retained earnings.
• D)Cash flow statement.
• E)Trial balance.

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Definitions:

Risk Averse

A descriptor for individuals or entities that prefer to minimize exposure to risk and avoid uncertain outcomes.

Risk and Return

The principle that potential return on investment rises with an increase in risk. Higher risk is associated with the greater probability of higher return and vice versa.

Moral Hazard

The tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior.

Diversification

An investment strategy that minimizes risk by allocating assets among various financial instruments, industries, or other categories.