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Statement listing assets, liabilities and owner's equity.Select one:a.Statement of Financial Positionb.Revenuec.Capitald.Expenses

Question

Statement listing assets, liabilities and owner's equity.

Select one:

  • a. Statement of Financial Position
  • b. Revenue
  • c. Capital
  • d. Expenses
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Solution

The correct answer is a. Statement of Financial Position.

Explanation:

The Statement of Financial Position, commonly referred to as the Balance Sheet, provides a detailed snapshot of a company's assets, liabilities, and owner's equity at a specific point in time. This financial statement reveals what the company owns (assets), what it owes (liabilities), and the residual interest of the owners in the company's assets after deducting liabilities (owner's equity).

In contrast, "Revenue," "Capital," and "Expenses" represent financial elements that do not encapsulate the entire picture of a company's financial standing in the same comprehensive way as the Statement of Financial Position.

Thus, when asked to identify which document lists assets, liabilities, and owner's equity, the correct option is definitely the Statement of Financial Position.

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