Question

How many of the following headings would be found on the balance sheet: Assets, Non-current assets, Current liabilities, Equity, Accounts receivable, Owner's equity, Inventory, Wages expense, and Interest income.

	A.	Five
	B.	Six
	C.	Seven
	D.	Eight

Answer 1

Ans:

A balance sheet is one of the three financial statements that reports assets, libilities and shareholder's equity. It is the summary of financial balances of the entity at a specific date. It is also called as Statement of financial position.

A standard company's balancesheet has two sides: assets and financing which is divided into two parts viz., liabilities and owner's equity.

according to the haedings given in the question,the major headings under asset side of the balancesheet are:

Heading	Subheading
Asset	Non Current Asset
	Current Asset

The major headings under Financing side of the balancesheet are:

Heading	Subheading
Owner's Equity (For Propreitership/Partnership)
Equity (For Companies)
Liabilities	Current Liabities

Here, Wages expenses is part of profit and loss account. Profit and loss account balance ultimately goes to retained earnings which is part of equity in balance sheet.

And, Accounts receivable is an item under Current Asset which is s part of the balance sheet.

The correct option is Five. Headings and subheadings under balancesheet includes Assets, Non Current Asset, Current Liabilities, Equity, Owner's Equity.