Financial position of the business is ascertained on the basis of:
1. Records prepared under bookkeeping process:
- Bookkeeping refers to the process of recording financial transactions and maintaining accurate and detailed records of a business's financial activities.
- The records prepared under bookkeeping process serve as the foundation for determining the financial position of the business.
- These records include journals, ledgers, and other financial documents that provide a comprehensive view of the company's financial transactions.
2. Trial balance:
- A trial balance is a statement that lists all the accounts in the general ledger along with their respective debit or credit balances.
- It is used to ensure that the total debits equal the total credits, which helps in detecting any errors or discrepancies in the accounting records.
- The trial balance provides a snapshot of the financial position of the business at a particular point in time.
3. Accounting reports:
- Accounting reports, such as balance sheets, income statements, and cash flow statements, are prepared based on the financial data recorded in the bookkeeping process.
- These reports provide detailed information about the company's assets, liabilities, equity, revenues, and expenses.
- By analyzing these reports, stakeholders can evaluate the financial performance and position of the business.
- The accounting reports help in making informed decisions, analyzing profitability, and assessing the overall financial health of the company.
4. None of the above:
- This option is incorrect as the financial position of the business is indeed ascertained based on the records prepared under the bookkeeping process, trial balance, and accounting reports.
In conclusion, the financial position of a business is determined by examining the records prepared under the bookkeeping process, verifying the trial balance, and analyzing the accounting reports. These sources provide the necessary information to assess the company's assets, liabilities, equity, and overall financial performance.

Financial position of a business refers to the overall financial health and standing of the business at a particular point in time. It helps stakeholders, such as investors, creditors, and management, to assess the solvency, liquidity, and profitability of the business. There are various methods and tools used to ascertain the financial position of a business, such as:

1. Records prepared under bookkeeping process:
Bookkeeping is the process of recording financial transactions and events of a business. It involves maintaining accurate and systematic records of all financial activities, including sales, purchases, receipts, and payments. These records help in tracking the inflow and outflow of funds and provide a detailed record of the financial transactions of the business. However, bookkeeping records alone are not sufficient to ascertain the financial position of a business.

2. Trial balance:
A trial balance is a statement that summarizes the balances of all the ledger accounts at a specific point in time. It ensures that the total debits equal the total credits and helps in detecting any errors or discrepancies in the bookkeeping records. While a trial balance is an important tool for ensuring the accuracy of the records, it does not provide a complete picture of the financial position of the business.

3. Accounting reports:
Accounting reports, such as the balance sheet, income statement, and cash flow statement, are crucial in ascertaining the financial position of a business. These reports are prepared based on the information recorded in the books of accounts and provide a comprehensive overview of the business's financial performance, assets, liabilities, and equity. The balance sheet reflects the financial position of the business at a specific point in time, while the income statement shows the profitability over a specific period. The cash flow statement provides information about the cash inflows and outflows of the business.

Therefore, out of the given options, the correct answer is 'C' - accounting reports. While bookkeeping records and trial balance are important components of the accounting process, they alone cannot provide a complete understanding of the financial position of a business. Accounting reports, on the other hand, consolidate and present the financial information in a meaningful and informative manner, allowing stakeholders to evaluate the financial health and performance of the business.