Question

The form of balance sheet is. (a) Horizantal (b) Horizontal or vertical (c) Vertical (d) None of these

Answer 1

Answer:

Explanation:

B

Answer 2

Answer:

The correct answer is an option ( b ) Horizontal or vertical.

Explanation:

• A balance sheet is a financial statement that shows the assets, liabilities, and equity of a corporation.
• The balance sheet is typically formed in formats: account form (horizontal presentation) or report form (vertical presentation).
• Most businesses prefer the vertical report format, which deviates from the standard investment literature interpretation of the balance sheet as having "two sides" that balance out.