A 'T' format for the Balance Sheet shows:
A)The assets section alongside liabilities and owner's equity
B)The assets section above liabilities and owner's equity
C)The liabilities section above assets and owner's equity
D)The owner's equity section above liabilities and assets

Question

Quizplus · Accepted Answer

The 'T' format for the balance sheet shows the assets section alongside the liabilities and owner's equity. This makes it easy to compare the amounts of assets with the amounts of liabilities and owner's equity, and helps to provide a clear picture of the financial health of the organization.

A 'T' Format for the Balance Sheet Shows