Question

Which of the following balance sheet formulas lists the assets on the left side of the page and the liabilities and stockholders' equity on the right side?

A. Single Step form
B. Multiple step form
C. Report form
D. Account form

Answer 1

The Account form is the balance sheet layout which lists assets on the left and liabilities plus stockholders' equity on the right, resembling a T-account. Therefore, the correct answer is option D.

Step-by-step explanation:

The balance sheet formula that lists the assets on the left side of the page and the liabilities and stockholders' equity on the right side is known as the Account form. This format is reminiscent of a T-account, which is a tool used in accounting to represent the two sides of a company's balance sheet. The T-account is characterized by its two-column T-shape, with the vertical line down the middle separating the assets from the liabilities and equity, and the horizontal line under the headings of "Assets" and "Liabilities."

Therefore, the correct answer is option D.