Commercial Applications
The main use(s) of a Balance Sheet for a non-trading organisation is/are
- Balance Sheet shows the assets owned by a non-trading organisation.
- It reveals the liabilities of the organisation.
- It shows the financial position of the organisation.
- All of these
Accounting
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Answer
All of these
Reason — The main uses of a Balance Sheet for a non-trading organisation include: (i) showing the assets owned by the organisation; (ii) revealing the liabilities of the organisation; (iii) depicting the Capital Fund of the organisation; (iv) showing the financial position of the organisation on a specified date; and (v) fulfilling the statutory requirements as a non-trading organisation is legally required to prepare a Balance Sheet.
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Related Questions
This account is equivalent to the Profit and Loss Account of a business concern.
- Receipts and Payments Account
- Income and Expenditure Account
- Balance Sheet
- None of these
It serves as the basis for preparing the Balance Sheet of a non-trading organisation.
- Receipts and Payments Account
- Income and Expenditure Account
- Balance Sheet
- None of these
Assertion (A): The Balance Sheet provides information about an organization's financial position at a specific point in time.
Reason (R): The Balance Sheet includes assets, liabilities, and equity, which reflect the organization's resources, obligations, and owner's interests.
- A is true but R is false
- A is false but R is true
- Both A and R are true and R explains A.
- Both A and R are true but R does not explain A.
The capital fund in the Balance Sheet increases with a surplus shown in the Income and Expenditure Account.
- True
- False