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A balance sheet includes which of the following? (A) Expenses (B) Intangibles (C) Return on owners' equity (D) Sales - HSC - SSCE Business Studies - Question 5 - 2002 - Paper 1
Question 5
A balance sheet includes which of the following? (A) Expenses (B) Intangibles (C) Return on owners' equity (D) Sales
Worked Solution & Example Answer:A balance sheet includes which of the following? (A) Expenses (B) Intangibles (C) Return on owners' equity (D) Sales - HSC - SSCE Business Studies - Question 5 - 2002 - Paper 1
Step 1
Which of the following?
Answer
A balance sheet encapsulates a company's financial position at a specific point in time. The components typically included are assets, liabilities, and equity.
- (A) Expenses: Expenses are typically found in the income statement, not in the balance sheet. Therefore, this option is incorrect.
- (B) Intangibles: Intangible assets, such as copyrights and patents, are classified as assets on the balance sheet. This option is correct.
- (C) Return on owners' equity: This is a metric calculated from net income; it does not appear directly on the balance sheet. Thus, this option is incorrect.
- (D) Sales: Sales revenue is recorded in the income statement. Therefore, this option is also incorrect.
In conclusion, the correct answer is (B) Intangibles.