Questions: The balance of Notes Payable is shown on which of the following financial statements? (A) Income Statement (B) Balance Sheet (C) Statement of Cash Flows D None of these answer choices

The answer is B: Balance Sheet.

Explanation for each option:

(A) Income Statement: The Income Statement reports a company's financial performance over a specific accounting period, focusing on revenues and expenses. It does not include liabilities such as Notes Payable.

(B) Balance Sheet: The Balance Sheet provides a snapshot of a company's financial position at a specific point in time, listing assets, liabilities, and shareholders' equity. Notes Payable, being a liability, is shown on the Balance Sheet.

(C) Statement of Cash Flows: The Statement of Cash Flows shows the cash inflows and outflows from operating, investing, and financing activities over a period. While it may reflect cash transactions related to Notes Payable, it does not show the balance of Notes Payable.

(D) None of these answer choices: This is incorrect because the balance of Notes Payable is indeed shown on the Balance Sheet.