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Answers
Answer:
Balance Sheet is a statement prepared to ascertain values of assets and liabilities of a business on a particular date. It is called Balance Sheet as it contain balances of real and personal accounts, which are not closed on a particular date.
Characteristics of Balance Sheet
1. It is a statement of assets and liabilities.
2. The total of Assets side must be equal to Liabilities sides.
3. It is prepared at a particular date.
4. It helps in ascertaining the financial position of the business.
Answer:
A balance sheet is a statement of the financial position of a business that lists the assets, liabilities, and owner's equity at a particular point in time. In other words, the balance sheet illustrates your business's net worth
Explanation:
Characteristics of Balance Sheet:
The characteristics of balance sheet are enumerated:
(a) A Position Statement:
A Balance Sheet is a position statement as it contains the assets, liabilities and proprietors’ fund at a particular point of time stating the financial position as a whole.
(b) A Periodical Statement:
Since it is prepared at the end of a particular period, i.e., the financial position at a particular date, it is called a periodical statement. In short, it exhibits the true and fair view of state of affairs of a firm at a particular point of time.
(c) An Unallocated Cost Statement:
It is an unallocated cost statement in the sense that the assets which appear in the Assets side of the balance sheet are unallocated portion of various costs which will be written-off in future.
(d) A Complementary Statement:
It is, no doubt, a complementary statement to Income Statement and not a competing one.
(e) An Interim Report:
Balance Sheet is an interim report as it is prepared for a particular period only stating the financial position. But the business has its perpetual life. So, one year’s report may be considered an interim report.