Question

betina is trying to convince a buyer to purchase her company. the buyer wants to know what the companys overall financial condition was on december 31, 2018.
what type of financial statement should betina provide?

○ income statement

○ cash flow statement

○ statement of changes in equity

○ balance sheet

Explanation:

To determine the right financial statement, we analyze each option:

• Income statement: Shows revenue/expenses over a period (not a specific date’s financial condition).
• Cash flow statement: Tracks cash inflows/outflows over time (not a snapshot of financial position).
• Statement of changes in equity: Focuses on equity changes (not overall financial condition).
• Balance sheet: Presents assets, liabilities, and equity at a specific date (e.g., December 31, 2018), reflecting the company’s financial condition.

Answer:

D. Balance sheet