If Golden Company owed Eye Company $500, where would Golden Company reflect this?

Question

Quizplus · Accepted Answer

The statement of financial position, also known as the balance sheet, reflects the assets, liabilities and equity of a company at a specific point in time. The $500 owed by Golden Company to Eye Company would be reflected as a liability on the statement of financial position. The income statement shows revenue and expenses over a period of time, the statement of cash flows shows changes in cash and cash equivalents, and the statement of changes in equity shows the movement in the equity accounts of a company.

If Golden Company Owed Eye Company $500, Where Would Golden