Which of the following is descriptive of the proper form of a balance sheet?
A) The heading sets forth the period of time covered.
B) Cash is always the first asset listed, followed by permanent assets (such as land and buildings), and finally by assets such as receivables and supplies.
C) Liabilities are listed before owners' equity.
D) A subtotal for total assets plus total liabilities is shown.

Question

Quizplus · Accepted Answer

A balance sheet lists liabilities before owners' equity, as it follows the accounting equation: Assets = Liabilities + Owners' Equity.

Which of the Following Is Descriptive of the Proper Form