Question

Which of the following financial statements is prepared as of a specific date? Group of answer choices Balance sheet. Income statement. Retained earnings statement. Statement of cash flows.

Answer 1

Answer:

Balance sheet.

Explanation:

Options B, C, D are wrong because income statement, retained earnings statement, and statement of cash flows is prepared for a specific period. For example, an accounting year or a fiscal year. As a company is operating throughout the year, it can generate income, expenses, and dividends.

On the other hand, assets and liabilities are valued on a specific date. Therefore, option A (balance sheet) is correct.