The __________ is defined as "a Statement which sets out the assets and liabilities of a business and which serves to ascertain the financial position of the same on any particular date."

Cash Flow Statement

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Trading A/c

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Profit and Loss A/c

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Balance Sheet

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Solution

The correct option is D Balance Sheet
A balance sheet is a statement of the financial position of a business which states the assets, liabilities and owner's equity at a particular point in time.
It helps the investors to know the earning capacity of the firm and the dividend pay-out ratio.
It also provides valuable information about the existence of the firm after scrutinising some financial ratios to the creditors and investors by which they can take proper decisions.

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Similar questions

Q. The balance sheet is a __________ of the assets, liabilities and capital of concern as on particular date.

______ is prepared to ascertain the financial result of a business operation over a given period of time and ______ shows the financial position of a business at a particular date.

Q. ___________ is generally conducted to ascertain whether the Balance Sheet and Profit & Loss A/c presents a true and fair view of the financial position.

Q. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R).

Assertion (A) - The income statement and the balance sheet are financial statements that show the cash flows in and out of the business unit.

Reason (R) - The general purpose of financial statements is to show the financial position and performance of a business unit.

In the context of the above two statements, which of the following is correct?

[0.88 marks]

Which statement shows the increase and decrease in various assets, liabilities and capital in two or more balance sheets of the same business enterprise on different dates?

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