Practicing Success
.............shows the financial position in the form of assets, liabilities and capital. |
Trading A/c Income statement Balance sheet Trial balance |
Balance sheet |
The correct answer is option 3- Balance sheet. Trading and Profit and Loss account, also known as Income statement, shows the financial performance in the form of profit earned or loss sustained by the business. Balance Sheet shows financial position in the form of assets, liabilities and capital. These are prepared on the basis of trial balance and additional information, if any. |