Advertisements
Advertisements
Question
Why must a balance sheet always tally?
Options
To show profit
To ensure Assets = Liabilities + Owner’s Equity
To display only income
To include drawings
MCQ
Advertisements
Solution
To ensure Assets = Liabilities + Owner’s Equity
Explanation:
The fundamental rule is the accounting equation,total assets must equal the sum of liabilities and owner’s equity.
shaalaa.com
Is there an error in this question or solution?
