|
Answer» Difference between Statement of Affairs and Balance Sheet. | Basis of Difference | Statement of Affairs | Balance Sheet | | Reliability | Less reliable as it is prepared from incomplete records. | More reliable as it is prepared from double entry records. | | Objective | The objective of preparing statement of affairs is to determine capital balance on a particular date. | The objective of preparing balance sheet is to show the true financial position of an entity on a particular date. | | Omission | Omission of Assets and Liabilities cannot be discovered easily | Omission of Assets and Liabilities can be discovered easily and can be traced from accounting records. |
|