Which of the following is most likely to be found on the balance sheet portion of Peach Computer's financial statements?

• A. Sales Revenue
• B. Accounts Receivable
• C. Dividends Declared
• D. Cost of Goods Sold

Answer: (B)

Verified step by step guidance

1. Understand the structure of financial statements: The balance sheet is one of the primary financial statements and provides a snapshot of a company's financial position at a specific point in time. It includes assets, liabilities, and equity.
2. Identify the nature of each item listed in the problem: Sales Revenue and Cost of Goods Sold are components of the income statement, as they relate to the company's performance over a period of time. Dividends Declared are part of the statement of retained earnings, not the balance sheet.
3. Focus on Accounts Receivable: Accounts Receivable is an asset account that represents money owed to the company by customers for goods or services provided on credit. Assets are a key component of the balance sheet.
4. Confirm the classification: Since Accounts Receivable is an asset, it is most likely to appear on the balance sheet under the 'Current Assets' section, as it is expected to be converted into cash within a year.
5. Conclude the reasoning: Based on the nature of the items provided, Accounts Receivable is the correct answer because it aligns with the purpose and structure of the balance sheet.