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Balance Sheet Questions And Answers Pdf Trading Profit Loss Account Multiple Choice Comparative

Worksheet Details

  • CategoryBalance Sheet.
  • TopicComparative balance sheet questions and answers pdf.
  • AuthorHannah Stonham
  • PostedThu, Jul 11th 2019 07:49 AM
  • Formatjpg/jpeg

The balance sheet, also called the statement of financial position, is the third general purpose financial statement prepared during the accounting cycle. It reports a company’s assets, liabilities, and equity at a single moment in time. You can think of it like a snapshot of what the business looked like on that day in time.

Balance sheets are important because they it gives a snapshot of your business. The information it gives to any potential investors or lenders helps them understand how business is functions. It helps them learn about its principal resources are and any threats to its growth. Alongside an incomes statement and balance sheets, potential stakeholders can see trends over time, check ratios and balances. It can even show places where you could put cost-cutting measures in place.

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