A Balance Sheet is a position statement that shows the financial position of an enterprise at a point of time (on a specific date).
Unlike the Income Statement which summarizes revenues and expenses over a period, the Balance Sheet presents a snapshot of Assets, Liabilities, and Capital as they stand on a particular date (such as March 31, 2024 or December 31, 2023).
For example, when we say "Balance Sheet as at March 31, 2024", it means the financial position on that specific date only, not for the entire year.
Key Distinction:
Balance Sheet → At a point of time (specific date)
Profit & Loss Account → For a period of time (April 1 to March 31)
This is why the Balance Sheet heading always mentions "as at [date]" while the Profit & Loss Account mentions "for the year ended [date]".
Correct Option: 1