Question

the financial statements showing the assts and liabilities is called 1. balance sheet 2. trading account 3. profit loss account 4. none of the above
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Answer 1

Answer:

1.) BALANCE STREET

Explanation:

The balance sheet shows assets, liabilities, and shareholders' equity. Total assets should equal the sum of total liabilities and shareholders' equity.

Answer 2

ANSWER :

★ (1) Balance Sheet

• ✎ The financial statements showing the assets and liabilities is called Balance sheet.

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KNOW MORE :

❒ Balance Sheet :-

• ➻ According to J. R. Batliboi, "A Balance Sheet is a statement prepared with a view to measure the exact financial position of a business on a certain fixed date".

• ➻ According to A. Palmer, "The Balance Sheet is a statement at a particular date showing on one side and trader's property and possessions and on the other side the liabilities".

• ➻ A Balance Sheet is also known as "Statement of Financial Position" or "Position Statement".It is because Balance Sheet is the statement which shows the position of Assets and Liabilities of an entity on a particular date.

• ➻ On the Asset side of the Balance Sheet, all the balances of personal and real accounts appearing in the debit side of the Trial Balance will be shown except Drawing Account as it will be shown on the Liabilities side as a deduction from Capital Account.

• ➻ On the Liabilities side of the Balance Sheet, all the balances of personal and real accounts appearing on the credit side of the Trial Balance will be shown.