ACCA FA · Chapter 1 · Question 10 of 10
Which financial statement reports the assets, liabilities and equity of an entity at a specific date?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The statement of financial position
Explanation
The statement of financial position is a snapshot of assets, liabilities and equity at the reporting date. The statement of profit or loss, the statement of cash flows and the statement of changes in equity all report on performance or movements over a period of time.
More The context and purpose of financial reporting MCQs
- Q2Which user group is MOST likely to use financial statements to assess the stability and profitability of an entity as an indicator of its…
- Q3Which of the following statements about financial accounting and management accounting is correct?
- Q4Which of the following is a feature of a limited liability company?
- Q5Which body is responsible for developing and issuing IFRS Accounting Standards?
- Q6What is the main role of the IFRS Interpretations Committee?