Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:
Which among the following is a position statement of a company?
Options:
Balance sheet
Statement of profit and loss
Cash flow statement
All of above
Correct Answer:
Balance sheet
Explanation:
Financial statements are the basic and formal annual reports through which the corporate management communicates financial information to its owners and various other external parties which include investors, tax authorities, government, employees, etc. These refer to: the balance sheet (position statement) as at the end of accounting period.