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Q2 (IAS/1999) Economy › Industry, Infrastructure & Investment › Corporate and business forms Answer Verified

From the balance sheet of a company, it is possible to

Result
Your answer: —  Â·  Correct: C
Explanation

A balance sheet is a point-in-time statement that lists a company’s assets, liabilities and shareholders’ equity, allowing one to see the size and composition of those asset and liability items (a snapshot of financial position). Conventionally assets are shown on the left and liabilities on the right, and totals on both sides must balance, so the statement directly reports what the firm owns and what it owes [1]. However, the balance sheet does not directly measure the extent of profitability (that is revealed by the income statement) nor market share, so option 3 is the only accurate choice.

Sources

  1. [2] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 3: Money and Banking > 3.3 MONEY CREATION BY BANKING SYSTEM > p. 39
  2. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.4 Securities > p. 42
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