Question

a) If you receive a copy of the balance sheet, is one distributed to you once a month, once a year, or on some other more irregular basis? What are suppose to do with it upon receipt.

b) Do you think the balance sheet report you receive gives you useful information?

Answer 1

a) Balance sheet is a financial statement, which determines the asset, liabilities and the equity position of the company.

Assets are the

liabilities are legal obligations that the company owes to the outsiders of the company.

So, upon receipt of the balance sheet, a company studies the amount of debt and the level of current assets and fixed assets in the company.

b) Yes, the balance sheet provides useful information. It provides information about the financial position of the company.