What is accounting and balanced sheet

Question

Accepted Answer

Accounting is the process of recording, summarizing, and analyzing financial transactions of a business. A balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

Accounting involves recording financial transactions, summarizing them in financial statements, and analyzing the results.
A balance sheet is a financial statement that shows a company's assets (what it owns), liabilities (what it owes), and equity (the difference between assets and liabilities) at a specific point in time.
The balance sheet follows the accounting equation: Assets = Liabilities + Equity.
It provides a snapshot of a company's financial position and is used by investors, creditors, and management to assess the company's financial health.
Example: A company's balance sheet may show assets such as cash, inventory, and equipment, liabilities such as loans and accounts payable, and equity such as retained earnings.

What is accounting and balanced sheet

Top Vyapar Customer Support Specialist interview questions & answers

Popular interview questions of Customer Support Specialist