GENERAL KNOWLEDGE

Detailed explanation-1: -Balance Sheets. A balance sheet provides detailed information about a company’s assets, liabilities and shareholders’ equity. Assets are things that a company owns that have value. This typically means they can either be sold or used by the company to make products or provide services that can be sold.

Detailed explanation-2: -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-3: -A balance sheet is a financial report that summarizes the financial state of a business at a point in time. It provides an overview of the value of a business’s assets, liabilities, and owner’s equity. A balance sheet may also be called a statement of financial position.

Detailed explanation-4: -The form of the balance sheet in which assets, liabilities, and owner’s equity are presented in a downward sequence is called the report form.