Balance Sheet discloses the financial position of a business

The correct option is Option (b) at a particular point of time.

A balance sheet discloses the financial position of an entity at a particular point of time. The particular point of time is generally the last date of an accounting year. Most of the business concerns follow an accounting year ending on 31^st March and prepare their balance sheet as at 31^st March.

By financial position, it means the value of assets and liabilities of the entity. As an entity may enter into monetary transactions every day, the values of the assets and liabilities may also vary every day. Hence, to prepare the balance sheet of an entity, a particular point of time is to be chosen which is generally the last date of an accounting year

Option (a) for a given period of time is incorrect.

It is because the values of assets and liabilities of concern may differ daily, a balance sheet cannot be prepared to disclose the financial position of an entity for a given period of time.

The statement of profit or loss is prepared for a given period of time as it discloses the overall performance of an entity for a given period of time.

Option (c) after a fixed date is also incorrect.

The phrase, “after a fixed date” does not indicate a particular point of time. It may mean any day after a fixed date. For example, if there is an instruction to prepare a balance sheet that discloses the financial position of a concern after 30^th March, it may mean 31^st March, 1^st April or any day thereafter.

As we know that a balance can be prepared for a particular point of time, this option seems wrong.

Option (d) None of these is incorrect too as Option (b) is the correct one.