Without the Business Entity Convention, Which Item in the Balance

question 53

Multiple Choice

Without the business entity convention, which item in the balance sheet would not exist?

• A) equity
• B) liabilities
• C) cash at bank
• D) assets

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward-sloping.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of it that producers are willing and able to sell.

Equilibrium Quantity

The quantity of goods or services at which quantity demanded equals quantity supplied, leading to market equilibrium.

Perfectly Inelastic

A situation in demand where the quantity demanded does not change regardless of any change in price. This means the demand curve is a vertical line, indicating total unresponsiveness to price changes.