The balance sheet is prepared to reveal
-
A.
The result of the operations for the period under review -
B.
The financial position of the business -
C.
The arithmetical accuracy of the ledger accounts -
D.
The accruals and payment
Correct Answer: Option B
Explanation
The purpose of the balance sheet is to reveal the financial status of a business as of a specific point in time. The statement shows what an entity owns (assets) and how much it owes (liabilities), as well as the amount invested in the business (equity).