Which of the Following Financial Statements Shows a Firm's Financial

question 5

Multiple Choice

Which of the following financial statements shows a firm's financial position at a particular date?

• A) balance sheet
• B) income statement
• C) statement of cash flows
• D) statement of changes in retained earnings

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Definitions:

Increase Assets

Increasing assets refers to any action or transaction that raises the total value of the assets owned by an individual or entity.

Accounting Equation

The basic principle that equates assets with the sum of liabilities and shareholders' equity, formulated as Assets = Liabilities + Equity.

Liabilities

Financial obligations or debts that an entity owes to external parties, which must be settled over time through the transfer of economic benefits.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims on the company's resources.