Ivy Tech Accounting 101 Final Practice Exam

The balance sheet is a snapshot of a company’s financial position at a specific date, showing what it owns (assets), what it owes (liabilities), and the owners’ claim on those assets (equity). Revenues and expenses belong on the income statement and affect equity through net income, but they aren’t reported as balance sheet items. Cash is an asset, but revenue itself is not a balance sheet item. So the grouping that lists assets, liabilities, and equity correctly represents the balance sheet.