BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is false regarding the balance sheet?
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the accounts shown on a balance sheet represent the basic accounting equation for a particular business entity
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the retained earnings balance shown on the balance sheet must agree with the ending retained earnings balance shown on the statement of stockholders’ equity
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the balance sheet reports the changes in specific account balances over a period of time
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the balance sheet reports the amount of assets, liabilities, and stockholders’ equity of an accounting entity at a point in time
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Explanation:
Detailed explanation-1: -Answer and Explanation: The correct option is (c) Retained earnings statement.
Detailed explanation-2: -As balance sheet is a statement and not an account so there is no debit or credit side. So, Assets are shown on the right-hand side and liabilities on the left-hand side of the balance sheet.
Detailed explanation-3: -Expenses are not a part of a Company‘s balance sheet.
Detailed explanation-4: -Definition: Balance Sheet is the financial statement of a company which includes assets, liabilities, equity capital, total debt, etc. at a point in time. Balance sheet includes assets on one side, and liabilities on the other.
There is 1 question to complete.