The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:
A. Accounting equation.
B. Return on equity ratio.
C. Income statement equation.
D. Business equation.
E. Net income.
Answer: A
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Under the cost-adjusted-to-market method of accounting for an investment,
a. Dividend Income is credited when dividends are received. b. the investment account is credited when dividends are received. c. the investment account is credited when the investee reports a net income. d. Investment Income is credited when the invested reports a net income.
On a statement of cash flows prepared using the direct method, the FASB requires that cash payments for interest be classified as operating activities
Indicate whether the statement is true or false
Advertising explains that the drug Plavix works by preventing plaque buildup in arteries that can cause heart attack and stroke. This is an example of
A. using an attitudinal learning technique. B. using a behavioral learning technique. C. reducing perceived risk. D. creating stimulus generalization. E. using a cognitive learning technique.
The tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to as
A) leverage B) solvency C) yield D) quick assets