Question

Which one of the following best describes a balance sheet? A description of the entity's operations over a period of timeA snapshot at a point in time of an entity's assets, liabilities and owners' equityA reconciliation of an entity's bank account balanceA description of the company's cash flows over a period of time

Answer 1

Answer:

The answer is B. timeA snapshot at a point in time of an entity's assets, liabilities and owners' equity

Explanation:

A balance sheet is the financial position of a company at a point in time. It is one of the financial statements (along with income statement, cash flow statement) that report the company's assets, liabilities and shareholders equity.

In the balance sheet, we have current (cash, accounts receivable, inventory etc) and non-current assets(plant and machinery, land etc); we also have current liabilities (short term loan, trade payable) and non-current asset(bonds) and lastly shareholders equity (common shareholders, preferred shareholders etc.)

The sum of equity and liabilities must equal total assets.