BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The balance sheet displays the company’s total assets and how the assets are financed, either through either debt or equity. It can also be referred to as a statement of net worth or a statement of financial position. The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity.

Detailed explanation-2: -Explanation. A balance sheet is a financial statement that reports a company’s assets, liabilities and shareholders’ equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.

Detailed explanation-3: -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-4: -The correct answer is b) Assets = Liabilities-Owners’ Equity. Assets should equal to liabilities plus owner’s equity, not liabilities minus equity. Other equations are correct.