GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A company’s balance sheet is prepared in the order of permanence whereas a partnership firm’s balance sheet is usually, prepared in order of liquidity.
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In case of a company’s balance sheet, previous year’s figures are required to be given, whereas, it is not so in the case of a partnership firm’s balance sheet.
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For a company’s balance sheet, there are two standard forms prescribed under the Companies Act, 1956 whereas, there is no standard form prescribed under the Indian Partnership Act. 1932 for a partnership firm’s balance sheet.
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All of the above
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Detailed explanation-1: -The main difference is that a bank’s balance sheet includes assets such as loans and deposits, while a company’s balance sheet includes assets such as inventory and property.
Detailed explanation-2: -The balance sheet summarizes the financial position of a company at a specific point in time. The income statement provides an overview of the financial performance of the company over a given period. It includes assets, liabilities and shareholder’s equity, further categorized to provide accurate information.
Detailed explanation-3: -Balance Sheet Differences The balance sheet lists all of the company’s assets, liabilities and equity. Both types of company will still maintain these sections. However, there is one main difference in the accounts listed. This difference is found in the asset section.
Detailed explanation-4: -The balance sheet reports assets, liabilities, and equity, while the income statement reports revenues and expenses that net to a profit or loss. The income statement also notes any tax expense, while the balance sheet contains any unpaid tax liabilities.