Series 79 practice questioneasyFinancial Statement Analysis
Which financial statement would you analyze to determine a company's year-end cash balance?
- AIncome statement
- BBalance sheet✓ Correct answer
- CStatement of stockholders' equity
- DStatement of comprehensive income
Explanation
Why B — Balance sheet
The balance sheet reports a company's assets, including cash, at a specific point in time. Other statements, such as the income statement, do not provide period-ending cash balances, which can mislead those unfamiliar with financial statement structure.
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