Question : Which of the following are not Characteristics of Balance Sheet?
Option 1: It shows the financial position of a company at a specific point of time.
Option 2: The two parts of the Balance Sheet always match, i.e.,
Assets = Liabilities + Owners Equity, i.e., Shareholders Funds.
Option 3: It is prepared by taking balances of assets, liabilities and equity, i.e., shareholders Funds as on the date when it is prepared.
Option 4: None of the above
Correct Answer: None of the above
Solution : Answer = None of the above
The Balance Sheet shows the financial position at a specific time, balances assets, liabilities, and equity, and follows the equation Assets = Liabilities + Owners Equity. Therefore, all statements are characteristics of the Balance Sheet. Hence, the correct answer is none of the above.
Hence, the correct option is 4.
