Q 5.31: Which of the following balance sheet formats lists the assets on top and the liabilities and stockholders’ equity on the bottom? A : account form B : horizontal form C : vertical form D : report form

D : report form

Explanation:

A report format balance sheet lists account totals in vertical format where the assets are listed first at the top then liabilities, then shareholders' equity. All the account totals are listed on the right side of the report ; in simple terms, it vertically aligns the asset, liability, and equity accounts with the descriptions on the left and the account totals on the right. It also is easier to read than the account format balance sheet.

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