Which financial statement shows the value of the assets and liabilities on a certain date?

Which financial statement shows the value of the assets and liabilities on a certain date?

• A. The trading account
• B. Ratio analysis
• C. The balance sheet
• D. Liquidity

Answer: (C)

The balance sheet provides a snapshot of what a business owns (assets) and owes (liabilities) on a specific date, including the owners’ equity. Because it is dated for that moment in time, it directly shows the exact values of assets and liabilities as of that date. The other options describe different things: the trading account (income statement) covers income and expenses over a period, ratio analysis is a way to examine relationships between figures, and liquidity is a measure of how easily assets can be converted to cash, not a single financial statement.

The balance sheet provides a snapshot of what a business owns (assets) and owes (liabilities) on a specific date, including the owners’ equity. Because it is dated for that moment in time, it directly shows the exact values of assets and liabilities as of that date. The other options describe different things: the trading account (income statement) covers income and expenses over a period, ratio analysis is a way to examine relationships between figures, and liquidity is a measure of how easily assets can be converted to cash, not a single financial statement.