which statement is the cornerstone of accounting?
A balance sheet, also known as a "statement of financial position", reports a company's assets, liabilities and owners' equity (net worth) as at the year end or specific point in time.
It also provides a basis for computing rates of return and other ratios as follows:
Balance sheet provides the details of what a company's owns and owes, as well as the amount invested by owners.
Answer:
The balance sheet, together with the income statement and cash flow statement, is the cornerstone of accounting.
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