Q30
Which of the following equation is true for balance sheet
A.
Assets = Liabilities + Capital
AnswerB.
Liabilities = Assets + Capital
C.
Capital = Assets + Liabilities
D.
All of these
Answer: Option A
Solution
Answer: Option A
Solution:
The balance sheet displays the company’s total assets, and how these assets are financed, through either debt or equity. It can also be referred to as a statement of net worth, or a statement of financial position. The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity(Capital).