The main purpose of a balance sheet is to show

A) track the asset of the business

B) track the liabilities of the business

C) show the equity (or worth) of the business

D) none of the above

E) a, b, and c

E) a, b, and c

Explanation:

A balance sheet is among the three main financial statements prepared by a business at the end of a period. It displays the assets of a company on one side and liabilities and equity on the other. The preparation of the balance sheet follows the accounting equation of assets equal to liabilities plus equity.

The balance sheet shows the net worth of a company by showing the total value of the firm's assets and how the assets have been financed. It indicates the current value of assets and tracts changes from period to another. The balance sheet will also indicate current liabilities and compares them to the previous period.