We have used transaction analysis and the accounting equation to record several transactions for a company.The transactions are now recorded on a multi-column spreadsheet of the assets,liabilities and stockholders' equity of the company.If you wanted to prepare a balance sheet with this spreadsheet,which column(s)would you use?
A)final balances of asset columns only
B)final balances of liability columns only
C)final balances of stockholders' equity columns only
D)all of the above

Question

Quizplus · Accepted Answer

The balance sheet is a financial statement that reports the company's financial position as of a specific date. It presents the company's assets, liabilities, and stockholders' equity. Therefore, to prepare a balance sheet using the multi-column spreadsheet, we need to use all the columns - including the final balances of the asset, liability, and stockholders' equity columns. Only then can we accurately present the company's financial position.

We Have Used Transaction Analysis and the Accounting Equation to Record