shyannflores22 shyannflores22

17-06-2024
Business

Answered

What concept does the balance sheet explain based on the information it contains?

A. Net worth
B. Return on sales figures
C. Debt
D. The ability for a company to pay its obligations within the next 12 months

Answer :

GinnyAnswer GinnyAnswer

17-06-2024

Final answer:

The balance sheet explains a company's net worth by detailing its assets and liabilities, reflecting its short-term and long-term financial position.

Explanation:

The balance sheet is a financial statement that explains a company's net worth by listing its assets and liabilities. Net worth is calculated as assets minus liabilities, reflecting the company's overall value. It shows the company's current financial position in terms of its short-term and long-term assets compared to its liabilities.

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