Accounting Multiple Choice Question – 2 February 2019

A balance sheet is ……….. ?

Select ONE answer:

1. a ledger account, proving the accounting records “balance”
2. a statement showing the market value of a firm
3. a listing, in a particular format, of the balances brought down remaining in the double-entry accounts after the profit and loss account has been prepared
4. a statement showing the market value of assets and liabilities

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 3
1 – a balance sheet is not a ledger account
2 – a balance sheet does not show the market value of a firm
4 – A balance sheet does not show the market value of individual assets or liabilities

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