The Statement of Financial Position is based on which following equality:
A) Fixed Assets = (Stockholder's equity + Current Assets)
B) Assets = (Liabilities + Stockholder's equity)
C) Assets = (Current Long Term Debt + Retained earnings)
D) Fixed Asset = (Liabilities + Stockholder's equity)

Question

Quizplus · Accepted Answer

The Statement of Financial Position, also known as the Balance Sheet, is based on the accounting equation: Assets = Liabilities + Stockholder's Equity. This equation shows that a company's assets are financed by debts and equity.

The Statement of Financial Position Is Based on Which Following