Answer (B) is correct.
The statement of financial position, or balance sheet, provides
information about an entity’s resource structure (assets) and financing
structure (liabilities and equity) at a moment in time. According to the
FASB’s Conceptual Framework, the statement of financial position does
not purport to show the value of a business, but it enables investors,
creditors, and other users to make their own estimates of value. It helps
users to assess liquidity, financial flexibility, profitability, and risk.