Which of the following financial statements reports that total assets are equal to total liabilities plus total stockholders' equity?
A)Statement of owner's equity
B)Statement of cash flows
C)Income statement
D)Balance sheet

Question

Quizplus · Accepted Answer

The balance sheet reports a company's assets, liabilities, and stockholders' equity at a specific point in time, and the fundamental accounting equation states that assets must always equal liabilities plus stockholders' equity, which is represented on the balance sheet. The other financial statements, such as the income statement, statement of owner's equity, and statement of cash flows, do not directly report this equation.

Which of the Following Financial Statements Reports That Total Assets