Question

The financial statement that shows the state of the firm's assets, liabilities, and owner's equity on a specific date is called a(n)

Answer 1

Answer:

The financial statement that shows the state of the firm's assets, liabilities, and owner's equity on a specific date is called a balance sheet

Explanation:

By going through the question, the balance sheet option is appropriate.

As balance sheet involves assets, liabilities and  shareholder equity.

In mathematically,

Total Assets = Total Liabilities + Owner's equity

This we called the accounting equation

The balance sheet was made on the specific date because it interprets the firm financial position,performance,liquidity,solvency,leverage, etc.

Hence, The financial statement that shows the state of the firm's assets, liabilities, and owner's equity on a specific date is called a balance sheet