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Question
It is a financial statement which sets out the assets and liabilities of a trading or non-trading organisation as on a certain date.
Options
Trading Account
Profit and loss account
Balance sheet
Manufacturing account
Solution
Balance sheet
Explanation:
The statement of financial position, often called the balance sheet, is a financial statement that reports a company's assets, liabilities, and equity on a given date.
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RELATED QUESTIONS
What is a Balance Sheet?
What are the features of a Balance Sheet?
Explain five uses of Balance Sheet.
______ is a financial statement which sets out assets and liabilities as on a certain date.
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 not an account but a statement.
"A trading account reveals the financial position of an organisation." Comment.
State any two uses of Balance Sheet.
Receipts and payments account serves as the basis for preparing the balance sheet of non-trading organisation.
