Question

The financial statement that summarizes a firm's accounting value as of a particular date is called the:income statement.cash flow statement.liquidity position.balance sheet.periodic operating statement.

Answer 1

Answer:

Balance sheet

Explanation:

Balance sheet: In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:  

Total assets = Total liabilities + stockholder equity  

The debit and credit side of the balance sheet should always be equal and balanced.  

Moreover, it always is prepared on the specified date.

In the income statement, the total revenues and the total expenses are recorded.  

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

Basically there are three types of activities in the cash flow statement which are shown below:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

The liquidity position is determined by computing the current ratio and the quick ratio

And, the periodic operating statement is made month-wise which records payments, purchases, charges, fees, etc.

According to the given situation, the most appropriate option is the balance sheet