Which of the following items are shown on a balance sheet? Select the correct option.

• A. Assets, liabilities, and equity
• B. Dividends, retained earnings, and sales
• C. Revenues, expenses, and net income
• D. Cash flows from operating, investing, and financing activities

Answer: (A)

Verified step by step guidance

1. Understand the purpose of a balance sheet: A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It reports the company's assets, liabilities, and equity.
2. Review the components of a balance sheet: Assets represent what the company owns, liabilities represent what the company owes, and equity represents the residual interest of the owners after liabilities are subtracted from assets.
3. Analyze the options provided: The first option (Assets, liabilities, and equity) aligns with the components of a balance sheet. The other options refer to items found on other financial statements, such as the income statement or the statement of cash flows.
4. Clarify the incorrect options: Dividends, retained earnings, and sales are related to equity and income but are not directly shown as categories on the balance sheet. Revenues, expenses, and net income are part of the income statement. Cash flows from operating, investing, and financing activities are part of the statement of cash flows.
5. Conclude that the correct answer is the first option: Assets, liabilities, and equity, as these are the primary components reported on a balance sheet.