Which financial statement should Sasha use to view the company's Accounts Receivable balance as of a specific date?

• A. Statement of Retained Earnings
• B. Income Statement
• C. Balance Sheet
• D. Statement of Cash Flows

Answer: (C)

Verified step by step guidance

1. Understand the purpose of each financial statement: The Balance Sheet provides a snapshot of a company's financial position at a specific point in time, including assets, liabilities, and equity. Accounts Receivable is classified as an asset and is reported on the Balance Sheet.
2. Review the Statement of Retained Earnings: This statement shows changes in retained earnings over a period, including net income and dividends, but does not include specific asset balances like Accounts Receivable.
3. Examine the Income Statement: The Income Statement reports revenues, expenses, and net income over a period, but it does not provide information about asset balances as of a specific date.
4. Analyze the Statement of Cash Flows: This statement details cash inflows and outflows over a period, categorized into operating, investing, and financing activities. It does not show Accounts Receivable balances as of a specific date.
5. Conclude that the Balance Sheet is the correct financial statement to use for viewing the company's Accounts Receivable balance as of a specific date, as it lists all assets, including Accounts Receivable, at a specific point in time.