Which of the following statements regarding the balance sheet is true?
A)Any item on a balance sheet labeled payable is a liability of that company.
B)Current Assets are listed on the balance sheet in alphabetical order.
C)Assets + Liabilities = Equity
D)It lists all the accounts and their debit and credit balances.

Question

Quizplus · Accepted Answer

A payable on a balance sheet is a liability, meaning the company owes money to someone else. Choices B, C, and D are incorrect. Current assets are typically listed in order of liquidity (how easily they can be converted into cash), assets + liabilities = equity is the accounting equation, and the balance sheet lists accounts and their balances but not necessarily all their debit and credit transactions.

Which of the Following Statements Regarding the Balance Sheet Is