A businessman can find out what his business owns and what it owes from _______.
Balance Sheet
The correct answer is option 2. The Balance Sheet shows a business's assets, liabilities, and equity, helping the businessman find out what the business owns (assets) and what it owes (liabilities). The other accounts mentioned do not provide this specific information.
Important Questions from Balance sheet statement
___________ is a record of assets and liabilities of any firm.
Which of the following options is an INCORRECT pair considering a firm's balance sheet?
A trial balance shows
(i) Credit balances
(ii) Debit balances
Which of the following pairs is NOT correctly matched in the context of account balances shown in the Trial Balance?
Which of the following is (are) an example(s) of fictitious assets?
(i) Debit balance of Profit and Loss account
(ii) Goodwill
