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Worldatwork Exam T7 Topic 1 Question 95 Discussion

Actual exam question for Worldatwork's T7 exam
Question #: 95
Topic #: 1
[All T7 Questions]

What is the purpose of a balance sheet?

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Suggested Answer: A

by Fallon at Aug 27, 2024, 12:39 AM

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Franklyn
2 months ago
I agree with option A, as it gives a clear picture of where the company's money is coming from and how it is being utilized.
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Mollie
2 months ago
D is tempting, but I don't think it's the primary purpose of the balance sheet. That's more the job of the statement of changes in stockholders' equity.
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Stanton
2 months ago
Haha, I bet the person who wrote this question was just trying to trip us up. The balance sheet is clearly about the assets and liabilities, not the operating activities.
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Lorean
1 months ago
D) To reconcile the beginning and ending balances of stockholders' equity
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Lorean
1 months ago
A) To show sources of funds and the manner in which those funds are employed
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Billye
2 months ago
I'm torn between A and B, but I think A is the best answer. It's all about the sources and uses of funds. The cash flow statement deals with the changes in cash.
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Armando
2 months ago
Option A is the way to go. The balance sheet tells you where the company's money comes from and how it's being used. Gotta keep track of those funds, you know.
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Tonette
2 months ago
Absolutely, it's important to keep track of where the company's money is coming from and how it's being utilized.
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Gearldine
2 months ago
Option A is definitely the right choice. It shows sources of funds and how they are used.
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Lonny
3 months ago
I believe option A is correct because it provides a snapshot of a company's financial health.
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Effie
3 months ago
I think it also helps in understanding the financial position of a company.
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Cyril
3 months ago
The balance sheet is like a snapshot of a company's financial health. It shows what the company owns (assets) and what it owes (liabilities) at a specific point in time. Pretty straightforward if you ask me.
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Brittni
2 months ago
C) To show details of the nature of a company's operating activities
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Jettie
2 months ago
B) To account for changes in cash during the accounting period
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Annamaria
2 months ago
A) To show sources of funds and the manner in which those funds are employed
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Miesha
3 months ago
The purpose of a balance sheet is to show sources of funds and how they are used.
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