Purpose of the balance sheet

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Purpose of the balance sheet:




A balance sheet is also called a ‘statement of the financial position’, as it provides picture of your assets and liabilities – shows net worth at a single point of time.

Three different sections in balance sheet; ASSETS-LIABILITIES=OWNER’S EQUITY

It is called balance sheet because, at any given moment, each side of the equation must balance out. 



By Kahkshan Asif ☺

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