The balance sheet is also known as:the income statement.the statement of comprehensive income.the statement of cash flows.the statement of financial position.
Question
The balance sheet is also known as:the income statement.the statement of comprehensive income.the statement of cash flows.the statement of financial position.
Solution
The balance sheet is also known as the statement of financial position.
Here's why:
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The balance sheet, or statement of financial position, is one of the main financial statements of a company. It presents a company's financial position at a specific point in time.
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It consists of three main components: assets, liabilities, and equity. Assets are what a company owns, liabilities are what a company owes, and equity represents the ownership interest of the shareholders.
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The income statement, also known as the profit and loss statement, shows the company's revenues, costs, and expenses over a period of time to calculate net income.
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The statement of comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
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The statement of cash flows shows the cash inflows and outflows from operating, investing, and financing activities over a period of time.
So, the balance sheet is also known as the statement of financial position.
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