Which statement expresses the purpose of an organization?

• A. Mission statement
• B. Balance sheet
• C. Vision statement
• D. Income statement

Answer: (A)

Verified step by step guidance

1. Understand the purpose of each term provided in the options: Mission statement, Balance sheet, Vision statement, and Income statement.
2. A Mission statement defines the organization's purpose, core values, and primary objectives, explaining why the organization exists.
3. A Balance sheet is a financial statement that provides a snapshot of an organization's assets, liabilities, and equity at a specific point in time.
4. A Vision statement outlines the long-term aspirations and goals of the organization, describing what it aims to achieve in the future.
5. An Income statement is a financial report that shows the organization's revenues, expenses, and profits over a specific period, reflecting its financial performance.