Which of the following is generally considered to be the most important financial statement for judging the?

Question

economic well being of a firm?A.Income statement. B.Balance sheet. C.Cash flow statement. D.Retained earnings statement

Answer 1

Answer B. The balance sheet is a 'snapshot' of an entity's financial standing as of a given date. From it, one can determine whether the entity's assets have been, overall, generated from borrowing (liabilities) or through profitable operations (equity).

The other statements are, of course, not left out in a complete analysis of a firm's economic well-being.