Which of the following statements describes the balance sheet?
Posted: Sat Aug 07, 2021 6:45 am
A) It reports a company's revenues and expenses.
B) Assets are generally reported on the balance sheet at the cost incurred to acquire them.
C) Stockholders' equity includes only retained earnings.
D) It reports a company's cash flow from operations.
Answer: B
Explanation: The balance sheet generally reports assets, liabilities, and stockholders' equity at
the initial cost incurred to acquire them.
B) Assets are generally reported on the balance sheet at the cost incurred to acquire them.
C) Stockholders' equity includes only retained earnings.
D) It reports a company's cash flow from operations.
Answer: B
Explanation: The balance sheet generally reports assets, liabilities, and stockholders' equity at
the initial cost incurred to acquire them.