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WAEC Financial Accounting 2012 Question 7

Question 7

Final Accounts of a Sole Trader

A Balance Sheet shows only

  1. A.fixed assets and current assets.
  2. B.assets and long term liabilities.
  3. C.assets and liabilities.
  4. D.assets and capital.
Show the answer and explanation

Answer: C (assets and liabilities.)

Explanation

A balance sheet lists what the business owns (assets) and what it owes (liabilities, including what it owes the owner as capital) at a date.