The_____is an accounting statement that reports the financial condition of a firm at a specific point in time.

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22-08-2022
Business

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The_____is an accounting statement that reports the financial condition of a firm at a specific point in time.

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AnkitM AnkitM · Answer 1 · 2022-08-28T17:54:08+02:00

The Balance sheet is an accounting statement that reports the financial condition of a firm at a specific point in time.

Balance sheet is an accounting statement that reports the financial condition. The state of a company's finances reflects its capacity to acquire and deploy capital. If certain circumstances occur or have a high likelihood of occurring, financial condition is weak. First off, a company's financial health is weak if it is unable to pay its payments.

Effective operating profitability (revenues in excess of expenses), effective asset management (only necessary and profitable assets are invested in), effective capital structure management (liabilities are not used excessively), and appropriate pay out of returns to owners through dividends and appreciation in ownership value all contribute to strong financial condition.

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