Final answer:
The three parts of a balance sheet heading are the name of the business, the name of the financial statement, and the date. A balance sheet comprises assets, liabilities, and owner's equity, with the T-account format displaying assets on the left and liabilities and net worth on the right. The correct option is a a. name of business, name of financial statement, date.
Step-by-step explanation:
The three parts of a balance sheet heading are the name of the business, the name of the financial statement, and the date. This means that the correct answer to the student's question is 'a. name of business, name of financial statement, date'. A balance sheet itself comprises assets, liabilities, and owner's equity, which are not to be confused with the parts of its heading. It is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by its owners.
It's important to understand that assets include things of value like cash and real estate, while liabilities are debts such as mortgages. The difference between assets and liabilities is known as net worth, or bank capital, in the context of a bank's balance sheet. Moreover, the typical format of a balance sheet is the T-account, where the assets are listed on the left and the liabilities and net worth on the right, ensuring that assets always equal liabilities plus net worth.