Commercial Applications
…………… shows the financial position of the organization.
- Trial balance
- Profit and Loss account
- Balance sheet
- Income and Expenditure account
Answer
Balance sheet
Reason — Balance Sheet is a statement which shows the assets and liabilities of an organisation and its capital fund on a particular date. It depicts the financial position of the organisation on a specified date. Trial balance only checks arithmetical accuracy; Profit and Loss Account / Income and Expenditure Account show financial performance, not financial position.
Related Questions
If the total of …………… side is greater than the total of …………… side, it is called 'surplus' or 'excess of income over expenditure'.
- Debit, credit
- Credit, debit
- Credit, credit
- Debit, debit
Which of the following is/are correct statement(s)?
Statement 1: Income and Expenditure Account includes both capital and revenue items.
Statement 2: Receipts and Payments Account is a summary of cash transactions over a specific period.
- Only Statement 1 is correct
- Only Statement 2 is correct
- Both Statements 1 and 2 are correct
- Both Statements 1 and 2 are incorrect
Receipt and Payment account is a …………… account.
- Real
- Nominal
- Personal
- Trading
Which of the following is not a feature of Balance Sheet?
- It is statement
- Reflects profit-loss of an organization
- It shows Capital Fund of the organization
- It shows financial position of the organization