Question

A balance sheet provides a statement of your finaancial

a) position

b) performance

c) neither

Answer 1

A balance sheet provides a statement of your financial a) position

It's a statement which reports position of current assets, fixed assets, current liabilities, equity, long term liabilities at a specific point in time. It provides the status of a company at a specific date. Balance sheet is a position statement.

Balance sheet does not provide a statement of financial performace. Performance of a company is reflected by its Profit and loss account.

Neither cannot be the answer because as explained above, balance sheet reflects the financial health of a company at a specific point in time.