Q.

2 (B)
The balance sheet of an organization shows its financial condition at a specific point in time.
Monthly, quarterly and annual balance sheets tell the story of an entity's fiscal health, enabling
stakeholders to assess past performance and predict future trends. Different types of
organizations, such as banks and corporations, include different types of information on their
respective balance sheets.
Definition of Company Balance Sheet
Balance Sheet is a statement that shows the current financial position of a company, i.e. the
assets owned by the company and the liabilities owed to the company, along with its net worth
at the end of the financial year. Now what we need to know is how it is prepared and what items
are shown in it?
A balance sheet is prepared as per the Schedule VI of the Indian Companies Act, 1956 in which
Notes to the accounts are prepared for clear understanding. It is divided into two heads, (1)
Equity & Liabilities and (2) Assets whose total amount needs to be identical.
A company's balance sheet starts with its cash and cash equivalents, marketable securities and
accounts receivable. Depending on the company's business, it may also list as assets items
such as raw materials, finished products and inventory. A company also lists its fixed assets
such as manufacturing factories, fixtures and equipment. Other assets may include intangibles
such as intellectual property: patents, trademarks and copyrights. After listing assets, a
company's balance sheet lists its current liabilities -- those that are due within the next 12
months -- and long-term debt, lease obligations, deferred income taxes and other non-current
liabilities.
Definition of Bank Balance Sheet
The Balance Sheet of a Bank reflects its financial health. Liabilities shows the sources of
funds raised, Assets accounts for the applications of the funds and net worth is the owners fund
at a particular date, usually at the end of the financial year.
Now, lets talk about whats new in the Balance Sheet of the Bank. We all know the simple and
basic definition of Balance Sheet, here we are going to discuss how it is prepared and what are
the major items shown in it.

Balance Sheet of a bank is prepared according to the Banking Regulation Act, 1949 in which
Schedules are prepared for its clear understanding. It is mainly divided into two broad heads (1)
Capital and Liabilities (2) Assets whose amount must be same.
The first few lines of a bank balance sheet are similar to a company balance sheet, listing cash,
securities and interest-bearing deposits. However, one of the most significant assets on a bank
balance sheet is the line item for net loans -- money the bank loaned to its customers. Among
the liabilities on a bank's balance sheet are interest-bearing and non-interest-bearing deposits,
short-term debt and long-term debt.

Q. 10 (A)
The accounting balance sheet is one of the major financial statements used by accountants and
business owners. The balance sheet presents a company's financial position at the end of a
specified date. Some describe the balance sheet as a "snapshot" of the company's financial position
at a point (a moment or an instant) in time. For example, the amounts reported on a balance sheet
dated December 31, 2015 reflect that instant when all the transactions through December 31 have
been recorded.
Components of Balance Sheet:

Assets
Liabilities
Owner's (Stockholders') Equity

Assets
Assets are things that the company owns. They are the resources of the company that have been
acquired through transactions, and have future economic value that can be measured and expressed
in dollars. Assets also include costs paid in advance that have not yet expired, such as prepaid
advertising, prepaid insurance, prepaid legal fees, and prepaid rent.
Examples of asset accounts that are reported on a company's balance sheet include:

Cash
Petty Cash
Temporary Investments

Accounts Receivable
Inventory
Supplies
Prepaid Insurance
Land
Land Improvements
Buildings