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 NOT a step for preparing the balance sheet?
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Identify all of the liabilities of the company, including accounts and rents payable.
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Ensure that total assets are equal to liabilities plus equity.
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Compute the total owner’s equity by adding total assets and total liabilities.
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Identify all of the equity held by the company’s owners and stockholders.
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Explanation:
Detailed explanation-1: -Expenses are not a part of a Company‘s balance sheet.
Detailed explanation-2: -Parts of a Balance Sheet. A balance sheet is divided into three overall categories: assets, liabilities and shareholder equity. Each line item under these categories is the position of the business at that particular point in time.
Detailed explanation-3: -Which of the following accounts is not included in the asset section of the balance sheet? Cash.
There is 1 question to complete.