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Which financial statement represents the accounting equations


ASSETS = LIABILITIES + OWNER’S EQUITY 

  • a)
    Income Statement 

  • b)
    Cash Flow Statement 

  • c)
    Balance Sheet 

  • d)
    Funds Flow Statement 

Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Which financial statement represents the accounting equationsASSETS = ...
The financial statement that represents the accounting equation (Assets = Liabilities + Owner’s Equity) is: C: Balance Sheet
The balance sheet is designed to show a company's financial position at a specific point in time and directly reflects the accounting equation by listing all assets, liabilities, and the owner’s equity.
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Most Upvoted Answer
Which financial statement represents the accounting equationsASSETS = ...
Of course balance sheet represents the accounting equation because if you remember the horizontal format of the balance sheet then you will notice that on one side we put liabilities and capital and on other side we put the Assets of the organisation and the total of liabilities side that is the total of left side is always equals to the total of right side that is a total of assets side Thus
 we can say that the total of liabilities is equal to the total of assets this is clearly represented by the balance sheet
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Community Answer
Which financial statement represents the accounting equationsASSETS = ...
The financial statement that represents the accounting equation is the Balance Sheet. The balance sheet shows the assets, liabilities, and owner's equity of a business at a specific point in time. The formula Assets = Liabilities + Owner's Equity is the fundamental equation that the balance sheet is based on.
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