Question

Margie has been asked to prepare the balance sheet for the current period. The company wants to report current and noncurrent assets, current and long-term liabilities, and stockholders’ equity. Which balance sheet format would be best for Margie to use? A : Either the account form or the report form. B : Only the report form. C : Only the account form. D : Neither the account form nor the report form.

Answer 1

Answer: Option A

Explanation: A balance sheet refers to a financial statement that depicts the financial position of a company at a particular point of time, generally at year end. It shows the value of all assets that the company owns ,all the liabilities it has and the value of funds in hand as capital.

In the account form, assets are shown on the left and liabilities and capital on right. On the other hand, the report form shows them in vertical manner.

Hence she can choose any of the format.