BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is presented horizontally.
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Its total assets and total liabilities and owner’s equity are equal.
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Its assets and liabilities are classified as current or non-current.
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It follows the format of the accounting equation. SFP in account form is presented horizontally and is divided into 2 columns which have assets on the left, liabilities and equity on the right.
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Detailed explanation-1: -What is the Account Form? The account form refers to a two-column format for the presentation of the balance sheet. In this format, assets are listed in the first column, while liabilities and equity accounts are listed in the second column.
Detailed explanation-2: -Overview: The balance sheet-also called the Statement of Financial Position-serves as a snapshot, providing the most comprehensive picture of an organization’s financial situation. It reports on an organization’s assets (what is owned) and liabilities (what is owed).
Detailed explanation-3: -The balance sheet summarizes the financial position of a company at a specific point in time. The income statement provides an overview of the financial performance of the company over a given period. It includes assets, liabilities and shareholder’s equity, further categorized to provide accurate information.
Detailed explanation-4: -Answer and Explanation: The correct answer is option b) The balance sheet reports the assets, liabilities, and stockholders’ equity at a specific date. A balance sheet, also known as the statement of financial position, shows all the assets, liabilities and owner’s equity of the business at a specific period of time.