All of the following are elements of a balance sheet, EXCEPT:
I. Assets
II. Total Equity
III. Income
IV. Liabilities
Explanation
Answer: C - Assets, Total Equity and Liabilities are all components of the balance sheet.
The balance sheet, which is one of the major financial statements used by businesses (along with the Statement of Income and Expenses), measures a company's financial position at a given point in time. There are three elements of the balance sheet, Assets, Liabilities and Total Equity (or Net Worth). The assets of a business must equal the sum of its Liabilities and Total Equity (Assets = Liabilities + Total Equity), hence why it is called a balance sheet. Income is an element of the Statement of Income and Expenses.
