The Most Important Item on the Balance Sheet Is

question 95

Multiple Choice

The most important item on the balance sheet is:

• A)cash.
• B)disbursements.
• C)expenses.
• D)receivables.

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Definitions:

Entitlement

The right to benefit from assets or services, such as dividends for shareholders or leave benefits for employees.

Jointly Controlled Entity

An entity that is operated and controlled through a contractual arrangement between two or more parties who have joint control.

AASB 11

An accounting standard issued by the Australian Accounting Standards Board that outlines the reporting requirements for parties involved in joint arrangements.

Joint Operation

A business activity owned and managed by two or more parties that share control, resources, and obligations directly.