ITPEC FE Morning October 2023 Question 79
ITPEC FE Morning October 2023 — Question 79 of 80
The key phrase is "at a particular point of time." A balance sheet is a snapshot of what a company owns (assets), owes (liabilities), and the residual interest of shareholders (equity) on a single date. The accounting equation it represents is: Assets = Liabilities + Shareholders' Equity.
Why not others:
- (b) Statement of cash flows shows inflows/outflows of cash over a period
- (c) Statement of changes in equity tracks how equity changed over a period
- (d) Statement of profit or loss reports revenues and expenses over a period
Key rule: Balance sheet = snapshot at a point in time; all other major statements cover a period of time.
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