The Balance Sheet Is Composed of the Following Types of Accounts

question 285

Multiple Choice

The balance sheet is composed of the following types of accounts:

• A) revenue, expenses, and earnings.
• B) operating expenses, cash flow, and capital expenditures.
• C) capital, cost, and valuation.
• D) assets, liabilities, and owners' equity.

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Definitions:

Financial Statements

Consolidated reports created from a company's accounting data, including the balance sheet, income statement, and cash flow statement, used to communicate the financial performance and condition of the company.

Reporting Period

The specific span of time covered by financial statements, typically a fiscal quarter or year, over which a company reports its financial performance.

Footnotes

Additional notes provided in financial statements offering more detailed information about the accounts and policies applied.

Limitations

Restrictions or constraints that affect the scope, effectiveness, or applicability of something.