GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Loss of assets & liabilities
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Position statement
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Trading account
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Trial balance
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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: -True. The statement of financial position and the balance sheet are synonyms.
Detailed explanation-3: -A balance sheet explains the financial position of a company at a specific point in time. As opposed to an income statement which reports financial information over a period of time, a balance sheet is used to determine the health of a company on a specific day.
Detailed explanation-4: -A company’s balance sheet, also known as a “statement of financial position, ‘’ reveals the firm’s assets, liabilities, and owners’ equity (net worth). The balance sheet, together with the income statement and cash flow statement, make up the cornerstone of any company’s financial statements.