Which of the following statements about the balance sheet is correct?
A)An item on a balance sheet that is labeled as "payable" is a liability of that company.
B)Assets are listed on the balance sheet in alphabetical order.
C)The balance sheet balances when assets plus liabilities equal stockholders' equity.
D)The balance sheet proves that asset debits = liability credits.

Question

Quizplus · Accepted Answer

Payables are liabilities or obligations of the company.Companies list assets in order of liquidity (how soon they will be used up or turned into cash).The balance sheet balances when assets equal liabilities plus stockholders' equity (rather than assets plus liabilities equal stockholders' equity or asset debits equal liability credits).

Which of the Following Statements About the Balance Sheet Is