Question:
Carrie is creating a personal balance sheet. The heading includes the period of time that the balance sheet represents.
Which could be the heading of Carrie’s balance sheet?
a) Carrie’s Balance Sheet (January 1, 2021)
b) Carrie’s Balance Sheet (January)
c) Carrie’s Balance Sheet (Friday, January 3)
d) Carrie’s Balance Sheet (January 2011 – January 2021)
Answer:
a) Carrie’s Balance Sheet (January 1, 2021)
Explanation:
When creating a personal balance sheet, it’s important to include a heading that indicates the period that the balance sheet represents. Among the options given, the best heading for Carrie’s balance sheet would be ‘Carrie’s Balance Sheet (January 1, 2021).’ This heading gives readers an exact date to reference and explains Carrie’s financial position. Other options like ‘Carrie’s Balance Sheet (January)’ or ‘Carrie’s Balance Sheet (Friday, January 3)’ are too broad or too specific, while ‘Carrie’s Balance Sheet (January 2011–January 2021)’ covers a too long period that may not be relevant to Carrie’s current financial position.
You would also like to read Definition of Net Income.
More articles: