When preparing the financial statements:
A) assets, liabilities, and revenues are reported on the balance sheet.
B) the balance sheet reports the beginning balance of retained earnings.
C) assets, liabilities, and stockholders' equity are reported on the balance sheet.
D) assets, liabilities, and dividends are reported on the balance sheet.

Question

Quizplus · Accepted Answer

The generally accepted accounting principles require that the balance sheet reports the company's assets, liabilities, and stockholders' equity. The income statement reports all revenues and expenses for the period, while the statement of retained earnings reports the beginning balance of retained earnings, dividends, and the net income or loss. Therefore, option C is the correct choice.

When Preparing the Financial Statements