alleryStart learning →The balance sheet describes the financial condition of a firm over what span?
AOver the whole of a fiscal year
BOver an entire calendar quarter
CAcross a full three year span
DAt one moment in time
Answer & Solution
Correct answer: D. At one moment in time
1. The balance sheet represents the financial condition of a firm at one moment in time.
2. It does so in terms of assets, liabilities and owners' equity.
3. The income statement is the one that covers a period of time, summarizing revenues and expenses over that stretch.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 14 "Using Financial Information and Accounting", section 14.4 The Balance Sheet_
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