Bernard has just learned that on the balance sheet, a company's total assets must equal the _____ plus the _____.
A) money borrowed from others; money invested by the owners
B) accounts receivable; accounts payable
C) accumulated depreciation; asset value
D) net profit; retained earnings

Question

Quizplus · Accepted Answer

The correct answer is A) money borrowed from others; money invested by the owners. This is because a company's total assets must equal the sum of its liabilities (money borrowed from others) and equity (money invested by the owners), according to the accounting equation: Assets = Liabilities + Equity.

Bernard Has Just Learned That on the Balance Sheet, a Company's