Multiple Choice
Which type of financial statements display financial amounts in side-by-side columns on a single statement?
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1. Introduction to Accounting
The Financial Statements
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Which financial statement provides a list of a company's assets and liabilities at a specific point in time?
A
Statement of Cash Flows
B
Statement of Retained Earnings
C
Balance Sheet
D
Income Statement
Verified step by step guidance1
Understand the purpose of each financial statement: The Statement of Cash Flows shows cash inflows and outflows over a period, the Statement of Retained Earnings explains changes in retained earnings, the Income Statement reports revenues and expenses over a period, and the Balance Sheet provides a snapshot of assets, liabilities, and equity at a specific point in time.
Focus on the key requirement of the question: It asks for the financial statement that lists assets and liabilities at a specific point in time.
Recall the definition of the Balance Sheet: It is a financial statement that shows the company's financial position by listing assets, liabilities, and equity as of a specific date.
Compare the Balance Sheet to the other options: The Statement of Cash Flows, Statement of Retained Earnings, and Income Statement do not provide a snapshot of assets and liabilities at a specific point in time.
Conclude that the correct answer is the Balance Sheet, as it meets the criteria of listing assets and liabilities at a specific point in time.
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