The balance sheet
A) is a list of all accounts showing the title and balance of each account.
B) is used as an aid in preparing the trial balance and income statement.
C) is for a period of time.
D) shows that assets equal liabilities plus owner's equity.

Question

Quizplus · Accepted Answer

The balance sheet shows that assets equal liabilities plus owner's equity, making option D the correct choice. Option A is describing a chart of accounts, not the balance sheet. Option B is describing the trial balance and income statement, which are separate from the balance sheet. Option C is incorrect because the balance sheet shows a snapshot of a company's financial position at a specific point in time, not for a period of time.

The Balance Sheet