Which of the following statements regarding the balance sheet is INCORRECT?
A)The balance sheet reports shareholders' equity on the right-hand side.
B)The balance sheet provides a snapshot of the firm's financial position at a given point in time.
C)The balance sheet reports liabilities on the left-hand side.
D)The balance sheet lists the firm's assets and liabilities.

Question

Quizplus · Accepted Answer

The balance sheet reports liabilities on the right-hand side and assets on the left-hand side. This format is known as the accounting equation, where assets = liabilities + shareholders' equity. Therefore, the statement that the balance sheet reports liabilities on the left-hand side is incorrect.

Which of the Following Statements Regarding the Balance Sheet Is