Question

according to which act a business is required to prepare balance sheet

Answer 1

according to
companies act 2013 

Answer 2

Answer:

According to the Companies Act, 2013, every business is required to prepare balance sheet.

Explanation:

Companies Act, 2013 explains many requirements on the Accounting Standards that are to be followed while preparing the detailed profit and loss statement and also the balance sheet of a company.

Balance sheet provides detailed information about the company's business and financial condition for a particular financial year.

It is a consolidated information about the company's business capital, assets, liabilities for the specific time period. Details about expenditure and income of previous financial year are included.