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A balance sheet is a financial statement that: a. reports the cash flows of a fi

ID: 2591303 • Letter: A

Question

A balance sheet is a financial statement that: a. reports the cash flows of a firm as of a specified date. b. reflects the firm's accounting value on a particular date. c. records the revenues and expenses for a firm over a period of time. d. reflects the market value of a firm as of the statement date. e. reports the net income for a designated period of time based on the Generally Accepted Accounting Principles (GAAP). A balance sheet is a financial statement that: a. reports the cash flows of a firm as of a specified date. b. reflects the firm's accounting value on a particular date. c. records the revenues and expenses for a firm over a period of time. d. reflects the market value of a firm as of the statement date. e. reports the net income for a designated period of time based on the Generally Accepted Accounting Principles (GAAP). A balance sheet is a financial statement that: a. reports the cash flows of a firm as of a specified date. b. reflects the firm's accounting value on a particular date. c. records the revenues and expenses for a firm over a period of time. d. reflects the market value of a firm as of the statement date. e. reports the net income for a designated period of time based on the Generally Accepted Accounting Principles (GAAP).

Explanation / Answer

A balance sheet is a financial statement that:

b.   reflects the firm's accounting value on a particular date.

A balance sheet is a financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. Balance-sheet is prepared on a particular date mostly at the accounting period end, and it reflects the position of the company by showing the exact value of assets, liabilities and equity on that particual date.