1.

Differentiate between Statement of Affairs and Balance Sheet.

Answer»

Difference between Statement of Affairs and Balance Sheet.

Basis of DifferenceStatement of AffairsBalance Sheet
ReliabilityLess reliable as it is prepared from incomplete records.More reliable as it is prepared from double entry records.
ObjectiveThe 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.
OmissionOmission of Assets and Liabilities cannot be discovered easilyOmission of Assets and Liabilities can be discovered easily and can be traced from accounting records.



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