A Key Result in Accounting Practices Is That

question 146

Multiple Choice

A key result in accounting practices is that:

• A) assets - liabilities = owner's equity.
• B) assets + liabilities = owners' equity.
• C) liabilities - owners' equity = assets.
• D) assets + owners' equity = liabilities.

---

Definitions:

Component

A part or element that combines with others to form a whole system or product.

Contribution Margin

The amount of revenue from sales that remains after variable costs are subtracted, useful in determining the profitability of individual products or services.

Annual Fixed Costs

The total fixed costs incurred by a business in a year, including rent, salaries, and insurance, which do not vary with production volume.

Financial Advantage

The benefit gained in a financial context that puts an individual, company, or country in a better position than others.