On a balance sheet, a. total assets must equal total liabilities plus equity. b. total assets plus equity must equal total liabilities. c. total assets plus total liabilities must equal zero. d. total assets plus total liabilities plus equity must equal zero. Quizlet

Question

Dickson

Business

21 February, 05:51

On a balance sheet, a. total assets must equal total liabilities plus equity. b. total assets plus equity must equal total liabilities. c. total assets plus total liabilities must equal zero. d. total assets plus total liabilities plus equity must equal zero. Quizlet

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Answers (1)

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Makenna Reilly · Answer 1

a. total assets must equal total liabilities plus equity.

Explanation:

Balance sheet: In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:

Total assets = Total liabilities + stockholder equity

The debit and credit side of the balance sheet should always be equal and balanced.

Moreover, it always is prepared on the specified date.