Question

The statement which shows the assets and liabilities of a company is known as ______.

Options

• Profit And loss account

• Balance sheet

• Cash flow statement

• None of these

Answer 1

The statement which shows the assets and liabilities of a company is known as Balance sheet.

Explanation:

A balance sheet is often constructed in horizontal (T) format, with assets on the right and capital and liabilities on the left. In the case of corporations, assets and liabilities are organized on a permanent basis. As a result, all permanent long-term assets, capital, and liabilities are shown first, followed by liquid assets and liabilities in order of liquidity or maturity.