Question

State the objectives of preparing Balance Sheet.

Answer 1

Answer:

Balance sheet is a position statement prepared by an organization that shows the financial position at a particular point of time.

Explanation:

The objectives are as follows:-

i)The main objective of preparing a balance sheet is to depict the financial position of the business at a particular date in order to make financial analysis.

ii)The other objectives includes that it gives information about actual and real owners equity.

iii) It helps the business to make reliable reserves for any upcoming losses.