Question

Select the most appropriate alternative from those given below and rewrite the statement.

A statement showing financial position of the business is called as _________________.
a) balance sheet
b) trial balance
c) capital
d) trading A/c

Answer 1

A statement showing financial position of the business is called as Balance Sheet.

Explanation: A Balance Sheet is a statement containing balances of ledger accounts that are still open after the transfer of all nominal accounts to the Trading and Profit & Loss Account. The balances of all the personal and real accounts are grouped as assets and liabilities and transferred to the Balance Sheet.