會計學原理the balance sheet is not part of the double...

(1)the balance sheet is not part of the double entry system because

A. it does not have debit and credit entries.

B. it only shows all the assets, liabilities and capital a firm has

(2)in a balance sheet, the fixed asset "Office Equipment" should be placed______ of "Motor vehicles"

A.above

B.under

WHICH AND WHY?

1 Answer

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  • 1 decade ago
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    (1) B.

    Balance sheet contain assets, liabilities and capital of a firm. Increase in asset is put on debit side, increase in liabilities and capital is put on credit side.

    (2) It depends on liquidity of assets. If you place most liquid asset on top, like cash, Office Equipment should place above Motor vehicles as it is more liquid.

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