A lender wants to see what the contractor owns and owes on the final day of the quarter. Which financial statement supplies that view?
- AIt replaces payroll records
- BIt lists only project revenue
- Assets, liabilities, and equity
- DIt reports only cash received during a week
Why C is correct
The best answer is: Assets, liabilities, and equity. The balance sheet presents the financial position on a specified date and follows the assets-equal-liabilities-plus-equity relationship. It is distinct from the income and cash-flow statements. The new fact pattern changes the setting, not the governing rule or management control. The other choices either skip a required step, apply a different rule, or fail to address the stated risk.