True or False? A balance sheet is a report of revenue and expenses completed for a specific accounting period.

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BlackTom AI · Accepted Answer

The question asks whether a balance sheet is a report of revenue and expenses completed for a specific accounting period.
Option 1: 'True' — This is misleading because revenue and expenses are reported on the income statement (also called the profit and loss statement), which covers a period of time. A balance sheet does not summarize revenues and expenses; instead it shows the financial position at a specific point in time, listing assets, liabilities, and shareholders’ equity. Therefore, describing a balance sheet as a report of revenue and expenses is incorrect.
Option 2: 'False' — This statement correctly identifies that the balance sheet is not a revenue-and-expense report. It accurately reflects the purpose of the balance sheet as a snapshot of financial position at a given date. Since revenue and expenses are accounted for on the income statement over a period, this option aligns with standard accounting definitions.
Overall, the assertion in option 1 conflicts with the fundamental distinction between the balance sheet and the income statement, while option 2 aligns with the established roles of these financial statements.

11:709:448:01 FOOD PROD MGMT FINAL Exam - F25- Dec 18- Requires Respondus LockDown Browser

True or False? A balance sheet is a report of revenue and expenses completed for a specific accounting period.

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