A balance sheet includes ____,____,and ____.
A)income; expenses; net worth
B)assets; expenses; liabilities
C)income; liabilities; net worth
D)assets; liabilities; net worth

Question

Quizplus · Accepted Answer

A balance sheet includes assets (what the company owns), liabilities (what the company owes), and net worth (the difference between assets and liabilities, also known as equity). Income and expenses are recorded on the income statement, not the balance sheet. Therefore, option A and C are incorrect. Option B is incorrect because it includes expenses on the balance sheet, which is not a correct component of a balance sheet.

A Balance Sheet Includes ____,____,And ____

A Balance Sheet Includes ,,And