[amp_mcq option1=”Balance sheet” option2=”Income statement” option3=”Cash flow statement” option4=”Statement of changes in equity” correct=”option1″]
The correct answer is: A. Balance sheet
A balance sheet is a financial statement that reports a company’s assets, liabilities, and equity at a specific point in time. It is a snapshot of a company’s financial position, and it is used to assess a company’s financial health and to make investment decisions.
An income statement is a financial statement that reports a company’s revenues, expenses, and net income for a specific period of time. It is a measure of a company’s profitability, and it is used to assess a company’s performance over time.
A cash flow statement is a financial statement that reports a company’s cash inflows and outflows for a specific period of time. It is a measure of a company’s liquidity, and it is used to assess a company’s ability to meet its financial obligations.
A statement of changes in equity is a financial statement that reports the changes in a company’s equity for a specific period of time. It is a measure of a company’s financial performance, and it is used to assess a company’s ability to generate profits and to pay dividends.