The Value of Assets Exchanged for Goods or Services Provided

question 97

Multiple Choice

The value of assets exchanged for goods or services provided to customers as part of the main operations of a business are called

• A) assets
• B) revenues
• C) liabilities
• D) equity
• E) expenses

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Definitions:

Total Assets

This financial metric represents the sum of all resources owned by an entity, valued in monetary terms.

Current Liabilities

Obligations that a company needs to pay off within a year, including accounts payable, short-term loans, and accrued expenses.

Total Equity

The total net value of a company, calculated as total assets minus total liabilities; represents the owners' stake in the company.

Total Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.