Question

State any two uses of Balance Sheet. 

What are the uses of Balance Sheet.

Explain any three uses of Balance Sheet.

Answer 1

The main uses of a Balance Sheet for a non-trading organization are as follows:

1. Balance Sheet shows the assets owned by a non-trading organization.
2. It reveals the liabilities of the organization. 
3. It depicts the Capital Fund of the organization.
4. It shows the financial position of the organization.
5. It fulfills the statutory requirements as a non-trading organization is legally required to prepare a Balance Sheet.