Which of the following are the three basic elements of the balance sheet?

Question

Quizplus · Accepted Answer

The three basic elements of the balance sheet are assets, liabilities, and stockholders' equity. This is because the balance sheet is a snapshot of a company's financial position at a specific point in time, and these three elements represent what the company owns, what it owes, and what is left over for the shareholders. Assets are resources that the company owns or controls, such as cash, inventory, and property. Liabilities are obligations that the company owes, such as loans and accounts payable. Stockholders' equity is the residual interest in the assets of the company after deducting liabilities, and it includes contributed capital and retained earnings.

Which of the Following Are the Three Basic Elements of the Balance