Which item is shown on a balance sheet?

Which item is shown on a balance sheet?

• A. Budgets
• B. Revenues
• C. Profits
• D. Assets

Answer: (D)

A balance sheet shows the company’s financial position at a moment in time, listing what it owns (assets), what it owes (liabilities), and the owners’ equity. Assets are the resources the company controls with economic value, such as cash, accounts receivable, inventory, and equipment. Budgets are planning tools, not balance sheet items. Revenues come from the income statement and, while profits affect owners’ equity on the balance sheet through retained earnings, they’re not shown as a separate line item there. So the item you’d see on a balance sheet is assets.

A balance sheet shows the company’s financial position at a moment in time, listing what it owns (assets), what it owes (liabilities), and the owners’ equity. Assets are the resources the company controls with economic value, such as cash, accounts receivable, inventory, and equipment. Budgets are planning tools, not balance sheet items. Revenues come from the income statement and, while profits affect owners’ equity on the balance sheet through retained earnings, they’re not shown as a separate line item there. So the item you’d see on a balance sheet is assets.