On a Balance Sheet

Question

On a Balance Sheet

BlackTom AI · Accepted Answer

Question restatement: On a Balance Sheet
Options provided: 
 a. Liability accounts are listed on both the left-hand and right-hand side.
 b. Asset accounts are listed on the left-hand side.
 c. Asset accounts are listed on the right-hand side.
 d. Owner's Equity accounts are listed on the left-hand side.

Analysis of each option:
- Option a: 'Liability accounts are listed on both the left-hand and right-hand side.' In standard balance sheet formatting, liabilities are not shown on both sides; they are presented on the right-hand side along with Owner’s Equity. Having liabilities on both sides would misrepresent the typical accounting structure and balance sheet layout, making this statement inaccurate.
- Option b: 'Asset accounts are listed on the left-hand side.' This aligns with the conventional presentation of a balance sheet, where assets typically appear on the left (or and sometimes the debit side in T-accounts), while liabilities and Owner’s Equity appear on the right. This statement reflects the common grouping of assets in financial reporting.
- Option c: 'Asset accounts are listed on the right-hand side.' This would contradict the standard practice described above, where assets are shown on the left, not the right. It would invert the usual layout and would be considered incorrect in typical accounting formats.
- Option d: 'Owner's Equity accounts are listed on the left-hand side.' Owner’s Equity is traditionally part of the right-hand side along with Liabilities. Placing Owner’s Equity on the left would misstate the conventional balance sheet structure and is therefore inaccurate.

Synthesis: When evaluating the four statements, consider the standard balance sheet presentation: assets on the left, liabilities and Owner’s Equity on the right. The option that mirrors this conventional arrangement is consistent with the widely taught accounting framework, while the others conflict with the established layout. The reasoning above highlights why each incorrect option fails to match standard practice and why the remaining statement aligns with the accepted format.

MUF0021 Accounting Unit 1 - Semester 1, 2025 Quiz: The Accounting Equation

On a Balance Sheet

View Explanation

Log in for full answers

Similar Questions

Assets and liabilities are a part of which financial statement?

The financial statement that shows financial position at a point in time is the ________.

True or False? A balance sheet is a report of revenue and expenses completed for a specific accounting period.

Question at position 4 The balance sheet shows ______.current employee salarieswhat the business owns and what the business owesonly net worthshareholder deferred revenue

Assets are listed on the balance sheet in order of liquidity and liabilities are listed in order of amount.

In my balance sheet, I have inventories of $18000, total assets of $70400, long-term debt of $22000. What is the amount of my total liabilities and equity?

A balance sheet shows:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler