BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Trading A/c
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Income Statement
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Position Statement
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P & L A/c
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Detailed explanation-1: -Overview: The balance sheet-also called the Statement of Financial Position-serves as a snapshot, providing the most comprehensive picture of an organization’s financial situation. It reports on an organization’s assets (what is owned) and liabilities (what is owed).
Detailed explanation-2: -Balance sheet is also known as the statement of financial position because it provides the accurate details of the company’s assets and liabilities which then help the shareholders or creditors for constructive and productive decision making.
Detailed explanation-3: -Another name for the balance sheet is Statement of Financial Position.
Detailed explanation-4: -Balance Sheet: A balance sheet is a financial statement of a company that represents the values of its assets, liabilities, and Shareholder’s Equity at a specific time. It basically represents the financial position of a company. For this very reason, it is also called the Position Statement of the company.
Detailed explanation-5: -A balance sheet provides a snapshot of a firm’s financial position at a specific point in time, while an income statement – also known as a profit and loss statement – measures performance over a period of time. Accounting software helps to manage both of these financial statements.