--%>

Liabilities and Assets in Balance Sheet

Why Liabilities are always on the left side and Assets on right side in the Balance Sheet?

E

Expert

Verified

This is nothing although convention.

In United States they state Assets on the left side and Liabilities on the right side.

The accounting equation is as: Assets = Liabilities + Stockholders Equity

As you can notice the assets are on the left and Liabilities are on the right. On Balance sheet the Assets are reported initially and Liabilities and Stock holders Equity subsequently.

   Related Questions in Financial Accounting

  • Q : Modeling Cases DRAFT TV COMMERCIALS

    Source: O'Conner, G. C., T.R. Willemain, and J. MacLachlau, 1996. "The value of competition among agencies in developing ad compaigns: Revisiting Gross's model." Journal of Advertising 25:51-63. Modeling Cases

  • Q : Currency options and forward contract

    State some of the advantages of currency options contract as a hedging tool as compared with the forward contract?

  • Q : Define Asset Purchase Asset Purchase :

    Asset Purchase: Agreement between seller and buyer to obtain an organization's assets. In an asset purchase, only particular assets transfer ownership from seller to the buyer. Assets should be re-titled to the latest owner who has the capability to d

  • Q : Calculation of NPV Calculation of NPV:

    Calculation of NPV: Calculation of NPV is done through the same method of discounting as described above. However in this case the rate is predefined for  discounting. It is the cost of overall long term resources, whether debt or equity. This co

  • Q : Characteristics of international and

    Explain characteristics of the international and the domestic banks.

  • Q : Maximum factors Explain the Maximum

    Explain the Maximum factors influences and involvement which will depend on the performance and success of the employees ?

  • Q : Financial and Operational measures of

    State some of financial and operational measures MNC can take minimize the political risk linked with the foreign investment project?

  • Q : Define the term Accounts Receivable

    Accounts Receivable: The money owed by customers (that is, individuals or corporations) to other entity in exchange for services or goods that have been employed or delivered, however not yet paid for. Receivables generally come in the form of operati

  • Q : Call Option-Out of the money Explain

    Explain the terminology that an option is in-, at-, or out-of-the-money?

  • Q : Prepare adjusting journal entries The

    The following information for the month of December 20x6, with respect to cash activities, was gathered by Tressa Ltd.’s bookkeeper. Cash balance per books, December 1 $ 3,700

    Discover Q & A

    Leading Solution Library
    Avail More Than 1430854 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1932057
    Asked

    3,689

    Active Tutors

    1430854

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.