Question

A statement showing financial position of the business is called as _________. (Fill in the blank by choosing correct option)
a) balance sheet
b) trial balance
c) capital
d) trading A/c

Answer 1

trading A/c financial position of the business is called

Answer 2

Answer:

The correct answer to the given question is option (a) balance sheet

Explanation:

A balance sheet is a statement which contains the summary of all the personal and real accounts of a business or a firm.

The balance sheet is a statement which has all the records of a company's capital and property and also records how much has been received by the company and how much has been paid out.

The balance sheet is helpful in providing a base for the computing rates of Return and it also helps in evaluating the capital structure of a company.