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

Question

Quizplus · Accepted Answer

The balance sheet is composed of assets, which are resources owned by the entity; liabilities, which are obligations owed by the entity; and owners' equity, which is the residual interest in the assets of the entity after deducting liabilities. This is also known as the accounting equation: Assets = Liabilities + Owners' Equity. Revenue, expenses, earnings, operating expenses, cash flow, capital expenditures, capital, cost, and valuation are all related to the income statement, cash flow statement, and other financial statements but are not types of accounts on the balance sheet.

The Balance Sheet Is Composed of the Following Types of Accounts