Which of the following is a financial statement that reports

Subject : Business

Question: Which of the following is a financial statement that reports what an individual or a family owns and owes?

A) Income statement

B) Balance sheet

C) Cash flow sheet

Expert Verified Solution:

The correct answer is:

B) Balance sheet.

Explanation:

A balance sheet (also known as a statement of financial position) reports what an individual or a family owns (assets) and owes (liabilities) at a specific point in time. It provides a snapshot of financial health by showing the difference between assets and liabilities, which equals the net worth or equity.

In contrast:

A) Income statement reports income and expenses over some time, showing how much was earned and spent but not the overall financial position at a specific moment.

C) A cash flow sheet (or cash flow statement) reports cash inflows and outflows over a period of time, detailing how cash is generated and used, but it does not show assets and liabilities.