Which of the following must be true in order for the Balance Sheet to properly “balance”?...

Which of the following must be true in order for the Balance Sheet to properly “balance”?

	a.	Liabilities = Assets + Equity
	b.	Equity = Assets + Liabilities
	c.	Equity = Assets / Liabilities
	d.	Assets = Liabilities + Equity
	e.	Assets = Equity * Liabilities

Solutions

Expert Solution

d. Assets = Liabilities + Equity

Assets is equal to the sum of liabilities and equity.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Which of the following is true of a balance sheet, but not of an income and...

Which of the following is true of a balance sheet, but not of an income and expense statement? a. It is a monthly record of money coming in and money going out b. It is a snapshot of a person’s or business’ equity, or net worth, at any given time c. It has a top line, a bottom line, and shows the difference as discretionary income d. It includes items like your salary, wages, rent, utilities, groceries

1. Which of the following statements about the balance sheet are true? A classified balance sheet...

1. Which of the following statements about the balance sheet are true? A classified balance sheet to provide useful information about liquidity and long-term solvency. A classified balance sheet to provide useful information about liquidity and long-term solvency. Liquidity refers to an assessment of whether a company will be able to pay all its liabilities. Liquidity refers to an assessment of whether a company will be able to pay all its liabilities. Although many valuable resources are not recorded as...

Which of the following is not true about the balance sheet? a. Assets are on the...

Which of the following is not true about the balance sheet? a. Assets are on the left and liabilities on the right. b. Assets are listed in order of their liquidity. c. Accountants have no discretion regarding balance sheet items. d. Overdue receivables can be retained or written off. e. All of the above are true

Which of the following is true about stockholders' equity? a This section of the Balance Sheet...

Which of the following is true about stockholders' equity? a This section of the Balance Sheet will always equal total assets. b This section of the Balance Sheet can only be increased if the company sells more stock to its stockholders. c Corporations always must have at least two accounts in this section of the Balance Sheet: common stock and retained earnings. d Retained earnings in stockholders equity is the one account on the Balance Sheet that the ending balance...

Balance Sheet Which of the following statements about financial ratios is true?

Balance Sheet Which of the following statements about financial ratios is true? A. Generally, investors prefer a low current ratio. B. A low asset turnover ratio shows that the company is financially stable. C. The goal of management is to decrease earnings per share over time. D. A low debt ratio shows that the company will be more likely to pay its debts as they come due. E. Investors consider a current ratio of 1 to 1.5 to be desirable.

Which of the following is not true of a properly executed budgetary cycle? Select one: a....

Which of the following is not true of a properly executed budgetary cycle? Select one: a. past performance and market feedback are considered in setting budget amounts b. during the fiscal year, managers investigate deviations from plans c. specific financial and nonfinancial expectations are set d. deviations from plan are only investigated at the conclusion of the fiscal year as actual data can be finally compiled

Classified Balance Sheet The following balance sheet items, listed in alphabetical order, are available from the...

Classified Balance Sheet The following balance sheet items, listed in alphabetical order, are available from the records of Ruth Corporation at December 31, 2017: Accounts payable $19,330 Income taxes payable $5,640 Accounts receivable 24,820 Interest payable 1,635 Accumulated depreciation - automobiles 21,580 Inventory 47,320 Accumulated depreciation - buildings 42,350 Land 255,000 Automobiles 107,900 Long-term investments 76,810 Bonds payable, due December 31, 2021 145,000 Notes payable, due June 30, 2018 10,000 Buildings 211,750 Office supplies 2,535 Capital stock, $10 par value...

Classified Balance Sheet The following balance sheet items, listed in alphabetical order, are available from the...

Classified Balance Sheet The following balance sheet items, listed in alphabetical order, are available from the records of Ruth Corporation at December 31, 2017: Accounts payable $18,800 Income taxes payable $6,010 Accounts receivable 21,180 Interest payable 1,495 Accumulated depreciation - automobiles 23,800 Inventory 42,330 Accumulated depreciation - buildings 43,900 Land 245,000 Automobiles 119,000 Long-term investments 93,445 Bonds payable, due December 31, 2021 172,000 Notes payable, due June 30, 2018 11,000 Buildings 219,500 Office supplies 2,495 Capital stock, $10 par value...

The statement of cash flows must be prepared before the balance sheet is prepared. True False

Balance Sheet - which of the following is incorrect? A. We can discuss the balance sheet...

Balance Sheet - which of the following is incorrect? A. We can discuss the balance sheet items in terms of whether they are operating or nonoperating. B. A classified balance sheet highlights the differences between operating and nonoperating categories of assets and liabilities. C. The balance sheet represents the accounting equation of assets = liabilities + owners' equity. D. A classified balance sheet highlights current assets, long-term assets, current liabilities, long-term liabilities and owners' equity.

Subjects