Asked by Courtney Coffman on Jul 17, 2024
Verified
A formal presentation of the accounting equation
A) Income statement
B) Balance sheet
C) Statement of owner's equity
D) Statement of cash flows
Accounting Equation
The fundamental equation stating that Assets = Liabilities + Owner's Equity, used as the basis for double-entry bookkeeping.
Financial Statement
Formal records that outline the financial activities and condition of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.
- Acknowledge the accurate arrangement of financial statements.
Verified Answer
TM
Tyler MatthewsJul 19, 2024
Final Answer :
B
Explanation :
The balance sheet is the financial statement that presents a formal presentation of the accounting equation, which is Assets = Liabilities + Owner's Equity. It provides a snapshot of a company's financial position at a specific point in time by showing its assets, liabilities, and owner's equity. The other financial statements may provide information about revenue and expenses (income statement), changes in owner's equity (statement of owner's equity), and cash inflows and outflows (statement of cash flows), but they do not explicitly present the accounting equation.
Learning Objectives
- Acknowledge the accurate arrangement of financial statements.