The balance sheet is a statement which balances a firm's assets (what it owns) against its debt (what it owes) or its equity (what is provided by owners).

Question

Quizplus · Accepted Answer

The statement is true. The balance sheet shows the financial position of a firm at a given point in time by listing its assets, liabilities, and equity. The total value of the assets must equal the total value of the liabilities and equity, which is why it is called a "balance sheet."

The Balance Sheet Is a Statement Which Balances a Firm's