What Does the Balance Sheet Show

question 192

Multiple Choice

What does the balance sheet show?

• A) It shows the share price of the firm during the last year and how much fluctuation there has been in the share 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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Definitions:

Bottom Line

The final net income reported by a company, indicating the company's profitability, or metaphorically, the most important or fundamental aspect of a situation.

Activities

Tasks or actions that are undertaken as part of a project or process.

Confidential Personnel Data

Sensitive information related to employees, including personal details, performance records, and salary, which must be securely managed.

Outsourcing

The business practice of hiring external vendors to perform services or produce goods traditionally handled within the company.