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Which set of account types appears on the statement of financial position rather than the statement of profit or loss?
ARevenue, expenses, and dividends
BAssets, liabilities, and equity
CRevenue, assets, and liabilities
DExpenses, equity, and revenue
Answer & Solution
Correct answer: B. Assets, liabilities, and equity
1. Revenue and expenses are reported on the statement of profit or loss.
2. Assets, liabilities, and equity are the three categories reported on the statement of financial position.
3. These three are permanent accounts that are not closed out.
4. Options A, C, and D each mix in revenue or expenses, which belong to the profit or loss statement.
5. Therefore assets, liabilities, and equity appear on the statement of financial position.
_Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §1.5 "Asset, Liability and Stockholders' Equity Accounts", p.34_
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