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WAEC Financial Accounting 1996 Question 13

Question 13

Final Accounts of a Sole Trader

The balance sheet is a statement showing

  1. A.all assets and liabilities
  2. B.all balances
  3. C.credit entries of the business
  4. D.debit entries of the business
  5. E.capital and liabilities.
Show the answer and explanation

Answer: A (all assets and liabilities)

Explanation

A balance sheet shows the assets of the business and the claims against them (liabilities and capital) at a date.