Which of the Following Describes the Proper Form of a Balance

question 104

Multiple Choice

Which of the following describes the proper form of a balance sheet?

• A)Owners' equity is always the first section listed because it is the most important to external users.
• B)Cash is always the first asset listed,followed by permanent assets (such as land and buildings),and finally by assets such as receivables and supplies.
• C)Liabilities are listed before owners' equity.
• D)A subtotal for total assets plus total liabilities is shown.

Provide appropriate health education and counseling to parents based on the developmental needs of their child.

Understand the psychological impact of hospitalization and illness on children and families.

Identify strategies for promoting safety and injury prevention among children and adolescents.

Understand the advantages of computerized accounting systems including error reduction and automatic record updating.

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Definitions:

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and profit.

Ledger

A book or collection of accounts in which transactions are recorded, categorized, and summarized.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership value in the company.

Owner's Drawings

The amount of money taken out of a business by its owner for personal use.