There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-
Assertion: The Balance Sheet is a list of assets and liabilities of the company presented in the specified format for the year ended on that date.
Reasoning: The Balance Sheet is a statement of assets and liabilities of the company as on a particular date.
Answer & explanation
Correct answer: option 4
The Balance Sheet is a financial statement that provides a snapshot of a company's assets and liabilities as of a specific date, commonly the end of the fiscal year. It represents the financial position of the company at that particular moment in time.
The Balance Sheet is not a list of assets and liabilities "for the year ended on that date." Instead, it presents the company's financial position as of a specific date, such as December 31st of a given year. The Balance Sheet is a static report that captures the financial situation at a particular point in time, not for a specific period.