Question

All of the following describe a balance sheet except which one? A. The balance sheet reflects the results of multiple transactions. B. The balance sheet contains assets, liabilities, and owner’s equity sections. C. The balance sheet is a picture of a business in financial terms. D. The balance sheet contains only assets and liabilities sections.

Answer 1

The choice that does not describe the balance sheet is D. The balance sheet contains only assets and liabilities sections.

Balance sheet is one of a company's financial statement. It is also known as the statement of financial position. It represents the the company's financial position at the end of a specified date.

The assets, liabilities, and owner's equity sections of the balance sheet reflects the results of multiple transactions creating an image of a business in financial terms.