[amp_mcq option1=”Income statement” option2=”Cash flow statement” option3=”Balance Sheet” option4=”Funds flow statement” correct=”option3″]
The correct answer is C. Balance Sheet.
A balance sheet is a financial statement that reports a company’s assets, liabilities, and equity at a specific point in time. The accounting equation, “Assets = Liabilities + Owners Equity”, is represented through the balance sheet.
An income statement is a financial statement that reports a company’s revenues, expenses, and net income for a specific period of time.
A cash flow statement is a financial statement that reports a company’s cash inflows and outflows for a specific period of time.
A funds flow statement is a financial statement that reports a company’s sources and uses of cash for a specific period of time.