In a business organized as a corporation, it is not necessary to list the equity of each shareholder on the balance sheet.

Question

Quizplus · Accepted Answer

In a corporation, the equity of each shareholder is not reported on the balance sheet. Instead, the total equity of the corporation is reported as one line item on the balance sheet. Shareholders' equity can be found in the corporation's financial statements, but not on the balance sheet.

In a Business Organized as a Corporation, It Is Not