Accounting for IGCSE & O level - Final Statements (Section 14 - No. 12)
What happens to the balance sheet at the end of the accounting year?
The balance sheet remains the same as the start of the year.
It is updated to reflect the value of assets and capital.
The balance sheet is only used at the start of the year.
It shows how much the business owes.
Explication
The balance sheet is updated at the end of the accounting period to reflect the current financial standing of the company.