ACCA Applied Knowledge · Business and Technology · Financial information provided by business
Which of the following financial statements shows the financial position of an entity at a particular date, presenting its assets, liabilities and equity?
The statement of financial position shows an entity's assets, liabilities and equity at a specific date. It is a snapshot of position, unlike the profit or loss statement and cash flow statement, which cover performance and cash movements over a period of time.
- AStatement of profit or loss and other comprehensive income
- BStatement of financial positionCorrect
- CStatement of cash flows
- DStatement of changes in equity
Explanation
The statement of financial position (balance sheet) is a snapshot at a point in time of what the entity owns (assets), owes (liabilities) and the owners' residual interest (equity). The statement of profit or loss reports performance over a period, and the cash flow statement reports cash movements over a period.
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