Question

Which of the following statement is correct? Group of answer choices The balance sheet shows the firm’s assets, liabilities, and equity at a given point in time. The funds of a firm come from revenues or dividends. All the answers are incorrect. The Modified Accelerated Cost Recovery System method (MACRS) slows the depreciation write-off by pushing a smaller portion (percent) of the total expense to the front of the asset's life. Earnings before Interest and Taxes (EBIT, or Operating Income) is the profit that the firm receives from its business operations after subtracting all financing expenses.

Answer 1

Answer:

The balance sheet shows the firm’s assets, liabilities, and equity at a given point in time.

Explanation:

While preparing the balance sheet, the accounting equation is to be used that means the total value of the asset is equivalent to the total value of liabilities and the total value of the equity. It shows the financial position for the given period of time.

So as per the given options, the first one is correct