Multiple choice general knowledge

Balance sheet statement is prepared for the entire financial year....

  1. True

  2. False

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The balance sheet is prepared as on a specific date, not for the entire financial year. It shows the financial position at that particular point in time. Income statements (Profit & Loss) are prepared for the entire financial year. Therefore, the statement 'Balance sheet statement is prepared for the entire financial year' is False.