Multiple choice

Financial position of the business is ascertained on the basis of

  1. records prepared under bookkeeping process

  2. trial balance

  3. accounting reports

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The financial position of a business is reflected through comprehensive accounting reports like the Balance Sheet and Statement of Affairs. While bookkeeping provides raw records and trial balance helps verify postings, the actual financial position requires structured accounting reports that present assets, liabilities, and capital in a standardized format.

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