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Commerce · Q259

Accounting

Graduate and Post Graduate · Commerce · question 259

Q259

Which of the following financial statements show the financial health of an organisation at a stated point of time?

A.
Balance sheet
Answer
B.
Trading and Profit & Loss account
C.
Cash flow statement
D.
Statement of retained earnings

Answer: Option A

Solution

Answer: Option A
Solution:
Balance sheet financial statements show the financial health of an organisation at a stated point of time. A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.