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Commercial Applications

Which of the following is not a feature of Balance Sheet?

  1. It is statement
  2. Reflects profit-loss of an organization
  3. It shows Capital Fund of the organization
  4. It shows financial position of the organization

Accounting

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Answer

Reflects profit-loss of an organization

Reason — Reflecting profit or loss is NOT a feature of the Balance Sheet — that is the function of the Profit and Loss Account (or Income and Expenditure Account in case of non-trading organisations). The Balance Sheet is a statement (not an account) that shows assets, liabilities and Capital Fund, depicting the financial position of the organisation on a particular date.

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