In what order would the items on the balance sheet appear?
Posted: Sat Aug 07, 2021 6:53 am
A) Assets, retained earnings, liabilities, and common stock.
B) Common stock, retained earnings, liabilities, and assets.
C) Assets, liabilities, common stock, and retained earnings.
D) Common stock, assets, liabilities, and retained earnings.
Answer: C
Explanation: The balance sheet order is assets, liabilities, and stockholders' equity. Stockholders'
equity includes common stock and retained earnings.
B) Common stock, retained earnings, liabilities, and assets.
C) Assets, liabilities, common stock, and retained earnings.
D) Common stock, assets, liabilities, and retained earnings.
Answer: C
Explanation: The balance sheet order is assets, liabilities, and stockholders' equity. Stockholders'
equity includes common stock and retained earnings.