What are the components of the balance sheet?
A) owners' equity, assets, and liabilities
B) expenses, revenue, and net income
C) revenue, expenses, and owners' equity
D) assets, liabilities, and revenues

Question

Quizplus · Accepted Answer

The balance sheet consists of three components - owners' equity, assets, and liabilities. Owners' equity represents the amount of the company that is owned by the shareholders, assets are the resources owned by the company, and liabilities are the debts and obligations owed by the company to others. Expenses, revenue, and net income are components of the income statement, while revenue, expenses, and owners' equity together make up the statement of retained earnings. Assets, liabilities, and revenues are not the correct components of the balance sheet.

What Are the Components of the Balance Sheet