A company’s balance sheet will show you which of the following?

A company’s balance sheet will show you which of the following?
A . revenue, profit and expenses
B . equity, assets and liabilities
C . cash coming in and out of the business
D . profit, loss and assets

View Answer

Answer: B

Explanation:

a balance sheet shows ‘equity, assets and liabilities’. The other financial statements you need to know for this exam are cash flow statements and and income statements.

If you’re not familiar with these three I strongly recommend you do some further reading on this before the exam if you can. This is helpful: How the 3 Financial Statements are Linked Together – Step by Step (corporatefinanceinstitute.com)