The correct answer is D. All of the above.
A balance sheet is a financial statement that reports a company’s assets, liabilities, and equity at a specific point in time. Assets are the resources that a company owns, liabilities are the debts that a company owes, and equity is the difference between assets and liabilities.
Assets are typically classified into current assets and long-term assets. Current assets are assets that are expected to be converted into cash or used up within one year. Long-term assets are assets that are not expected to be converted into cash or used up within one year.
Liabilities are typically classified into current liabilities and long-term liabilities. Current liabilities are liabilities that are due within one year. Long-term liabilities are liabilities that are not due within one year.
Equity is the difference between assets and liabilities. Equity is also known as shareholders’ equity or owner’s equity. It represents the amount of money that would be left over if a company sold all of its assets and paid off all of its liabilities.
A balance sheet is a useful tool for investors and creditors because it provides information about a company’s financial health. Investors can use a balance sheet to assess a company’s ability to generate profits and repay its debts. Creditors can use a balance sheet to assess a company’s ability to repay its loans.