The balance sheet is composed of the following types of accounts:
A)Revenue,expenses,and earnings.
B)Operating expenses,cash flow,and capital expenditures.
C)Capital,cost,and valuation.
D)Assets,liabilities,and owners' equity.

Question

Quizplus · Accepted Answer

The balance sheet is composed of three types of accounts: assets, which are resources owned by the entity; liabilities, which are obligations of the entity; and owners' equity, which represents the residual interest in the assets of an entity after deducting liabilities. Revenue, expenses, and earnings are part of the income statement, while operating expenses, cash flow, and capital expenditures are part of the cash flow statement. Capital, cost, and valuation are not specific types of accounts that appear on the balance sheet.

The Balance Sheet Is Composed of the Following Types of Accounts