The correct answer is D. Annually.
A balance sheet is a financial statement that reports a company’s assets, liabilities, and equity at a specific point in time. It is prepared at the end of each accounting period, which is usually a year.
A balance sheet is a snapshot of a company’s financial position. It shows what the company owns (assets), what it owes (liabilities), and what it is worth (equity). The assets and liabilities are listed on the left side of the balance sheet, and the equity is listed on the right side. The two sides of the balance sheet must always be equal.
The assets of a company are the things that it owns and that have value. They can be tangible assets, such as cash, land, and equipment, or intangible assets, such as patents and trademarks.
The liabilities of a company are the things that it owes. They can be short-term liabilities, such as accounts payable and accrued expenses, or long-term liabilities, such as bonds and mortgages.
The equity of a company is the difference between its assets and its liabilities. It is the amount that the owners of the company have invested in the company.
The balance sheet is an important financial statement because it provides information about a company’s financial position. It can be used to assess a company’s liquidity, solvency, and profitability.
Here is a brief explanation of each option:
- Daily: Balance sheets are not typically prepared daily. This would be too time-consuming and expensive.
- Weekly: Balance sheets are not typically prepared weekly. This would still be too time-consuming and expensive.
- Monthly: Balance sheets are sometimes prepared monthly. This is a common practice for small businesses.
- Annually: Balance sheets are typically prepared annually. This is a common practice for large businesses.