Question

The balance sheet
A. summarizes the changes in total equity for a specific period of time.
B. presents the revenues and expenses for a specific period of time.
C. reports the assets, liabilities, and stockholders' equity at a specific date.
D. reports the changes in assets, liabilities, and stockholders' equity over a period of time.

Answer 1

Answer: Option C

Explanation: A balance sheet can be defined as a type of financial statement. It records all the resources owned by the company as assets, its debt obligation as liabilities and the total amount of funds invested by the owners as stockholders equity.

Unlike income statement, the balance sheet is prepared at a particular point of time, generally at the end of the year.