Question

Statement of financial position produced from incomplete accounting record is commonly known as:
1.Balance Sheet.
2. Profit and Loss account.
3. Statement of Affairs.
4. Statement of financial position.

Answer 1

3. Statement of affairs

Answer 2

Statement of financial position produced from incomplete accounting record is commonly known as statement of affairs.

Basically, this statement of affairs comprise of assets and liabilities. This gives the net book value as well as the amount that is expected to realize during the insolvency of the business.

This document is very critical for the insolvency process and to extract the overview of company’s assets along with liabilities.