A balance sheet that places the liabilities and equity to the right of the assets is a(n):
A) Report form balance sheet.
B) Classified balance sheet.
C) Unclassified balance sheet.
D) Account form balance sheet.
E) Interim balance sheet.

Question

Quizplus · Accepted Answer

An account form balance sheet presents assets on the left side and liabilities and equity on the right side, just like a T-account. Therefore, the correct choice is D. The report form balance sheet presents assets and liabilities in a single column, the classified balance sheet groups assets and liabilities into subcategories, and the unclassified balance sheet does not group items into subcategories. An interim balance sheet is a financial statement prepared for a period of less than one year.

A Balance Sheet That Places the Liabilities and Equity to the Right