Asked by Muhammad Haque on May 16, 2024
Verified
A(n) _____ is a financial statement that is directly based on the accounting equation.
A) balance sheet
B) income statement
C) statement of cash flows
D) statement of changes in retained earnings
Balance Sheet
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.
Accounting Equation
Formula that states that assets must always equal the sum of liabilities and owners’ equity.
- Grasp the basic principles of accounting and the accounting equation.
Verified Answer
TM
Tiffany MarieMay 21, 2024
Final Answer :
A
Explanation :
The balance sheet is directly based on the accounting equation, which is Assets = Liabilities + Equity. It provides a snapshot of a company's financial position at a specific point in time by listing its assets, liabilities, and equity.
Learning Objectives
- Grasp the basic principles of accounting and the accounting equation.
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