Arrange the items in order: Liabilities, Assets, Equity on a balance sheet.
Understand the Problem
The question is asking for the proper order of items on a balance sheet, specifically how to arrange liabilities, assets, and equity.
Answer
Assets, Liabilities, then Equity.
On a balance sheet, the order is: Assets, Liabilities, then Equity.
Answer for screen readers
On a balance sheet, the order is: Assets, Liabilities, then Equity.
More Information
A balance sheet provides a snapshot of a company's financial condition by listing its assets, liabilities, and equity. Assets are resources owned by the company, liabilities are obligations, and equity represents the owner's claim after all liabilities are settled.
Tips
A common mistake is not ensuring the balance sheet balances. Always check that Assets = Liabilities + Equity.
Sources
- Balance Sheet Format - online.hbs.edu
- Understanding Balance Sheets - Investopedia - investopedia.com
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