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Question
Why is the balance sheet prepared "as on" a date, not "for the year ended"?
Options
It shows only yearly profit
It records transactions for a period
It reflects the financial position on a specific date
It calculates cash flow
MCQ
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Solution
It reflects the financial position on a specific date
Explanation:
The balance sheet delivers a snapshot of the financial position at a specific date, unlike accounts prepared for a period.
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