Explain the objectives of Balance Sheet.

1.	Explain the objectives of Balance Sheet.
Answer» Objectives of Balance Sheet are as under: The main objective of preparing Balance Sheet is to know the financial position of the business. To know the amount of Non-current assets and Current assets. : To know the amount of Non-current liabilities and Current liabilities. To know the amount receivable from various debtors. To know the amount payable to various creditors. To know the amount of net capital in the business. To calculate the various ratios for the purpose of financial analysis. To know the Reserves and Surplus of the business.

Answer»

Objectives of Balance Sheet are as under:

The main objective of preparing Balance Sheet is to know the financial position of the business.
To know the amount of Non-current assets and Current assets. :
To know the amount of Non-current liabilities and Current liabilities.
To know the amount receivable from various debtors.
To know the amount payable to various creditors.
To know the amount of net capital in the business.
To calculate the various ratios for the purpose of financial analysis.
To know the Reserves and Surplus of the business.

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