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Question
______ is a financial statement which sets out assets and liabilities as on a certain date.
Options
Trading account
Profit and Loss Account
Balance Sheet
Cash Budget
Solution
Balance sheet is a financial statement which sets out assets and liabilities as on a certain date.
Explanation:
A Balance Sheet is a financial statement that sets out the assets and liabilities of a trading or non-trading organisation as of a certain date.
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RELATED QUESTIONS
Write any two uses of the Balance Sheet?
What are the features of a Balance Sheet?
A ______ is a statement of assets and liabilities at the end of the period. It shows the financial position of a business on a certain date and represents the third and final stage.
It is a financial statement which sets out the assets and liabilities of a trading or non-trading organisation as on a certain date.
The excess of assets over liabilities represents the ______ of the owner.
Why is a Balance Sheet prepared?
Mr. Tate's financial position on 1 December, 2018 was as follows:
Stock ₹ 4,460; Debtors ₹ 890; Creditors ₹ 2 400; Cash ₹ 500; and Fixed assets ₹ 3,000.
- Draw up a statement to show his assets, liabilities and capital on 1.12.2018.
- During the month of December, 2018, the following transactions took place; Sold goods for cash ₹ 4.000; sold the balance goods on credit for ₹ 3 000; received ₹ 2 000 from debtors; paid ₹ 900 to creditors; withdrew ₹ 400 for personal use; allowed and accounted a direct payment of ₹ 500 by a debtor to one of the creditors.
Draw up a statement of his financial position at the end of the month of December 2018.
It is a statement of assets and liabilities. It is prepared to judge the financial position on a particular date.
It is always prepared on a particular date.
"A trading account reveals the financial position of an organisation." Comment.
