Final answer:
The proper order for information reported on the balance sheet is assets = liabilities + owners' equity. This statement is True.
Step-by-step explanation:
The proper order for information reported on the balance sheet is assets = liabilities + owners' equity. This statement is True.
Assets represent what a company owns, including cash, property, equipment, and investments. Liabilities are the company's debts, such as loans, accounts payable, and salaries payable. Owners' equity represents the value that the owners have in the company.
To maintain balance in a balance sheet, assets must equal liabilities plus owners' equity. This equation is also known as the accounting equation and is fundamental in understanding a company's financial position.