Douglas is preparing financial information and is making sure that total assets equal outstanding debt plus owner's equity.What financial statement is Douglas working on?
A) statement of owner's equity
B) statement of cash flows
C) income statement
D) balance sheet

Question

Quizplus · Accepted Answer

Douglas is making sure that total assets equal outstanding debt plus owner's equity, which is the fundamental equation of a balance sheet. Therefore, he must be working on a balance sheet.

Douglas Is Preparing Financial Information and Is Making Sure That