What are the two main parts of a balance sheet?

• A. Assets and Liabilities
• B. Income and Expenses
• C. Current and Non-Current
• D. Revenue and Costs

Answer: (A)

A balance sheet shows the business’s financial position at a specific date, detailing what it owns and what it owes. The two main parts are assets and liabilities. Assets are resources the business owns or controls. Liabilities are obligations to outsiders, and the owner’s equity represents the owner’s claim to the remaining assets after liabilities are deducted. The balance sheet is built so assets equal liabilities plus equity, highlighting how those assets are funded. The other options describe items from the income statement (like income, expenses, revenue, and costs) or classifications (current vs non-current) rather than the two broad sections of the balance sheet.