Question

Quickbooks (Computerized Accounting)

Question 15

1. Which of the following financial statements summarizes the financial position of a company?

   	A.	Balance Sheet
   	B.	Income Statement
   	C.	Profit & Loss Statement
   	D.	Statement of Cash Flows

Answer 1

Solution:
	Answer is A. Balance Sheet
Working Notes:
	Balance sheet is the financial statements that summarizes the financial position of the company in which we get the value of its assets, liabilities & equity value or in other words position on a particular date or end of the period.
	Income statement & Profit & Loss Statements shows the expenses , income during a particular period of time. It does not shows financial position it shows net of value of Expenses & income. Income statements are mostly prepared by non profit organizations while profit & loss accounts by Business or Profit oriented companies.
	Statements of cash flows by name its shows the cash flows of the organization generated or used by its financing, investing & operating activities during a particular period.
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