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 _________________.

Options

• balance sheet

• trial balance

• capital

• 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 transferring all nominal accounts to the Trading and Profit and Loss Account. The balances of all the personal and real accounts are grouped as assets and liabilities and transferred to the Balance Sheet.