Question

which of the following statement shows the financial position of a business entity as on date
a)income statement
b)balance sheet
c)trial balance
d)cash flow statement

Answer 1

The correct option is b) balance sheet.

The balance sheet is one of the financial statements which publish the assets, liabilities and owner’s equity at the end of the accounting year.

It displays the liquidity position of the firm, that is, its ability to meet the small terms debts and liabilities.

It also helps in analyzing the capital and financial structure of the firm to look after the leverage of the firm.

Answer 2

Income statement: A report that contains company's financial performance over a specific accounting period is an income statement.

Balance sheet: A statement that contains the assets, liabilities, and capital of a business at a particular time is a balance sheet.

Trial balance: A statement that contains all debits and credits is called a trial balance.

Cash flow statement: A statement that contains  the changes in balance sheet accounts and income is called as a cash flow statement.

Hence, a balance sheet statement shows the financial position of a business entity as on date.

The answer is (b) Balance sheet.