The term ___________ conveys a relationship of equality between the assets of the business and the sources of funds for their acquisition.
A) statement of cash flows
B) cash transactions statement
C) income statement
D) balance sheet

Question

Quizplus · Accepted Answer

The balance sheet conveys the relationship between the assets of the business and the sources of funds for their acquisition. It shows the assets, liabilities, and equity of the business at a specific point in time, and the total assets must always equal the total liabilities and equity. The other options listed do not convey this information.

The Term ___________ Conveys a Relationship of Equality Between the Assets