The balance sheet summarizes a business’s assets, liabilities, and shareholders ‘ equity. A balance sheet is like a photograph; it captures the financial position of a company at a particular point in time. The balance sheet is sometimes called the statement of financial position. The balance sheet shows the accounting equation in balance. 9) The balance sheet of an entity: A.shows the fair value of the assets at the date of the balance sheet . B.reflects the impact of inflation on the replacement cost of the assets . C.reports plant and equipment at its opportunity cost . D.shows amounts that are not adjusted for changes in the purchasing power of the dollar . Answer:View Answer

Whether you are building a balance sheet or working on an accounting exercise, the golden rule of a balance sheet is that at the end, the following equation must equate: Assets = Liabilities + Shareholders’ Equity. It is also important to note that the balance sheet is listed by liquidity per category.