Question

In a balance sheet, prepared according to the T-account form, the total liabilities and owners' equity amounts to $2,875,000. Therefore, in a balance sheet, prepared according to a reporting from, the total assets will be equal to:________

Answer 1

The total assets on a balance sheet using the T-account form will equal the total liabilities and owner's equity, which is $2,875,000.

Step-by-step explanation:

In a balance sheet prepared according to the T-account form, if the total liabilities and owners' equity amounts to $2,875,000, then in a balance sheet prepared according to a reporting form, the total assets will be equal to $2,875,000.

This is because the fundamental accounting equation states that Assets = Liabilities + Owner's Equity (or Net Worth). The T-account helps to visualize this, as it separates assets on one side (left) and liabilities and owner's equity on the other (right). Both sides must balance, meaning the sum of the assets must equal the sum of liabilities and owner's equity.