The financial position of a trading business is ascertained by preparing :

Correct option is C

The Balance Sheet is the financial statement that reflects the financial position of a business on a specific date. It shows the company’s assets, liabilities, and capital, helping stakeholders understand what the business owns and owes. Trial balance, trading, and P&L accounts do not provide the complete financial position; they are steps in the accounting process leading to the preparation of the Balance Sheet.
The Balance Sheet is also called the Statement of Financial Position, because it summarizes the true financial status of the business at the end of the accounting period.
Information Booster
· Balance Sheet includes assets, liabilities, and owner’s equity.
· It is prepared after the Trading and Profit & Loss Account.
· It helps determine solvency and liquidity of a business.
· It is a part of the final accounts of a business.
· It does not show profit or loss; it only reports the financial standing.