Which of the following describes the primary objective of the balance sheet?

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answerhappygod
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Which of the following describes the primary objective of the balance sheet?

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A) To measure the net income of a business up to a particular point in time.
B) To report the difference between cash inflows and cash outflows for the period.
C) To report the financial position of the reporting entity at a particular point in time.
D) To report the market value of assets, liabilities, and stockholders' equity at a particular point
in time.
Answer: C
Explanation: The balance sheet reports the amount of assets, liabilities, and stockholders' equity
(financial position) of an accounting entity at a particular point in time. These positions are
reported at historical cost, not market value.
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