Question

A double-ruled line should be drawn under the amount for
A.only total assets.
B.both total assets and total liabilities and owner’s equity.
C.both total assets and total liabilities.
D.only total liabilities and owner’s equity

Answer 1

Answer;

B. both total assets and total liabilities and owner’s equity.

Explanation;

A double-ruled line should be drawn under the amount for both total assets and total liabilities and owner’s equity.

A single ruled line should be drawn on the column line above the amount for total assets, total liabilities and total liabilities and owner' equity.

For a given date, the Balance sheet shows the; total assets, total liabilities and owner's equities. That is, the Balance sheet shows end-of-period balances in the firm's Assets, Liabilities, and Owners Equity accounts