What must balance with assets on the balance sheet?
A) Liabilities and owner's equity
B) Net worth and owner's equity
C) Capital and owner's equity
D) Net profit
E) Available cash

Question

Quizplus · Accepted Answer

According to the accounting equation, assets must always equal the sum of liabilities and owner's equity on the balance sheet. This ensures that the accounting equation remains in balance and reflects the true financial position of the business. Therefore, choice A is the correct answer.

What Must Balance with Assets on the Balance Sheet