If Total Liabilities Were Subtracted from Total Assets,the Residual Value

question 32

Multiple Choice

If total liabilities were subtracted from total assets,the residual value would be:

• A)revenues.
• B)owners' equity.
• C)current assets.
• D)current expenses.

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Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the profitability of a company's core business activities.

Operating Expenses

Operating expenses are the costs associated with the day-to-day operations of a business, excluding the cost of goods sold, such as rent, utilities, and payroll.

High-Low Method

A technique used in managerial accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.