Balance Sheet

 The Balance Sheet is a statement that shows the financial position of the business.

 It records the assets and liabilities of the business at the end of the accounting
period after the preparation of trading and profit and loss accounts
 Features of Balance Sheet

 It is regarded as the last step in final accounts creation

 It is a statement and not an account
 It consists of transactions recorded under two sides namely, assets and liabilities.
Assets are placed in the left hand side, while the liabilities are placed on the right
hand side
 The total of both side should always be equal
 The balance sheet discloses financial position of the business
 It is prepared after trading and profit and loss account is prepared.
Format for Balance Sheet
 Merits of MNC

 Employment
 Lower Labour Costs
 Inflow of Capital
 Technical Development
 Access to consumers
 Promotes Competitions
 Innovations
 Demerits of MNC

 Threat to Domestic Industries

 Natural Resource Loss
 No Advantage for the Poor
 Loss of sovereignty
 Promotion of Foreign Culture Selfishly
 Pollution of the environment
 Abuse of Labour rights