Which of the following statements concerning a statement of financial position is (are) correct?

A) Assets equal liabilities minus shareholders' equity.
B) Current liabilities can be converted into cash within twelve months.
C) A patent is an example of an intangible asset.
D) Retained earnings is classified as long-term debt.
E) The statement is also known as a profit and loss statement.

Statement Of Financial Position

Another term for a balance sheet; it shows a company's assets, liabilities, and equity at a specific point in time.

Intangible Asset

An asset that lacks physical substance but provides economic benefits to its owner, such as trademarks, patents, and goodwill.

Retained Earnings

Retained earnings refer to the portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends, typically used for reinvestment in the business or to pay down debt.