Which items belong on a balance sheet?

Prepare for the Illinois Chief School Business Official Exam with our comprehensive quiz. Study using multiple choice questions, flashcards, and detailed explanations. Enhance your readiness and ace your exam!

Multiple Choice

Which items belong on a balance sheet?

The balance sheet shows three things at a specific moment: assets, liabilities, and equity. Assets are resources the district owns or controls that have value. Liabilities are what the district owes to others. Equity (often called net assets) represents the ownership interest left after liabilities are subtracted from assets. Revenue and expenditures appear on the income statement, not the balance sheet, and cash flow appears on the statement of cash flows. Revenue and expenditures affect equity through net income, but they aren’t listed as balance sheet items themselves. Therefore, the items that belong on a balance sheet are assets, liabilities, and equity.

The balance sheet shows three things at a specific moment: assets, liabilities, and equity. Assets are resources the district owns or controls that have value. Liabilities are what the district owes to others. Equity (often called net assets) represents the ownership interest left after liabilities are subtracted from assets. Revenue and expenditures appear on the income statement, not the balance sheet, and cash flow appears on the statement of cash flows. Revenue and expenditures affect equity through net income, but they aren’t listed as balance sheet items themselves. Therefore, the items that belong on a balance sheet are assets, liabilities, and equity.

More practice questions