Which of the following are the three basic elements of the balance sheet?

Question

Quizplus · Accepted Answer

The three basic elements of the balance sheet are assets, liabilities, and shareholders' equity. Assets represent the resources that the company owns or controls, while liabilities represent the obligations that the company owes to external parties. Shareholders' equity represents the residual interest in the assets of the company after deducting liabilities. Contributed capital and retained earnings are components of shareholders' equity. Revenues are not a basic element of the balance sheet, but are instead reported on the income statement.

Which of the Following Are the Three Basic Elements of the Balance