ITPEC FE Subject A October 2025 Question 59

Source exam: ITPEC FE Subject A October 2025Topic: Corporate & Legal

ITPEC FE Subject A October 2025 — Question 59 of 60

The key phrase is "at a certain point in time" — this describes a snapshot, not a period.

  • Balance sheet = Assets, Liabilities, Net Assets at one moment
  • Formula: Assets = Liabilities + Net Assets (Equity)

Why not others:
- (b) Income statement — shows revenues and expenses over a period

- (c) Statement of Cash Flows — tracks cash movement over a period

- (d) Statement of Changes in Equity — shows equity changes over a period

Key rule: Balance sheet is the only financial statement that represents a point in time, not a time period.

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