The correct answer is: D. Financial position.
A balance sheet is a financial statement that reports a company’s assets, liabilities, and equity at a specific point in time. It is one of the three main financial statements, along with the income statement and the cash flow statement.
Assets are resources that a company owns and expects to benefit from in the future. Liabilities are obligations that a company owes to others. Equity is the difference between a company’s assets and its liabilities.
A balance sheet is a snapshot of a company’s financial position at a specific point in time. It can be used to assess a company’s financial health, to compare its performance to that of other companies, and to track its financial progress over time.
Here is a brief explanation of each option:
- Option A: Only the assets position. This is incorrect because a balance sheet also includes liabilities and equity.
- Option B: Only the liability position. This is incorrect because a balance sheet also includes assets and equity.
- Option C: Cash position. This is incorrect because a balance sheet includes all of a company’s assets, not just cash.
- Option D: Financial position. This is the correct answer because a balance sheet reports a company’s assets, liabilities, and equity at a specific point in time.