1.

Give three differences between Balance Sheet and Statements of Affairs.

Answer»

Following are to three differences between balance sheet and statement of affairs.

BasisBalance sheetStatement of affairs
ObjectIt is prepared for ascertaining to financial position of a businessIt is prepared for ascertaining the capital of a business
Value of assets and liabilitiesActual values based on ledger accountsValues are based on estimates
Arithmetical accuracyIt is accurateIt is not always accurate



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