Describe the primary elements of balance sheet.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter6: Financial Statements And The Closing Process
Section: Chapter Questions
Problem 5RQ: Identify the sources of the information needed to prepare the balance sheet.
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Describe the primary elements of
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Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.
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