The balance sheet is composed of the following types of accounts:
A) revenue, expenses, and earnings.
B) operating expenses, cash flow, and capital expenditures.
C) capital, cost, and valuation.
D) assets, liabilities, and owners' equity.

Question

Quizplus · Accepted Answer

The balance sheet is composed of accounts that reflect a company's financial position at a specific point in time. These accounts include assets, which are the resources owned by the company, liabilities, which represent the company's obligations to pay debts and other obligations, and owners' equity, which is the residual interest in the assets of the company after deducting liabilities. Revenue, expenses, and earnings are part of the income statement, while operating expenses, cash flow, and capital expenditures are part of the cash flow statement. Capital, cost, and valuation are not specific types of accounts included in the balance sheet.

The Balance Sheet Is Composed of the Following Types of Accounts