The balance sheet depicts which of the following equations?
A)Net income = revenue − expenses.
B)Ending retained earnings = beginning retained earnings + net income − dividends.
C)Assets = liabilities + stockholders' equity.
D)Net cash flows = total cash inflows − total cash outflows.

Question

Quizplus · Accepted Answer

The balance sheet equation is Assets = Liabilities + Stockholders' Equity, which means that the sum of a company's assets must equal the sum of its liabilities and stockholders' equity at any point in time.

The Balance Sheet Depicts Which of the Following Equations