An Acceptable Variation of the Accounting Equation Is

question 68

Multiple Choice

An acceptable variation of the accounting equation is:

• A)Assets - Owner's Equity = Liabilities.
• B)Assets + Owner's Equity = Liabilities.
• C)Assets = Liabilities - Owner's Equity.
• D)All of these answers are correct.

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Definitions:

Goods and Services

Products and actions that fulfill human wants or needs, with goods being tangible items and services being intangible services.

Market System

A market system is an economic system where prices and the distribution of goods and services are determined by supply and demand in a competitive market.

Goods and Services

The physical items (goods) and actions or activities (services) that people produce and consume to satisfy their needs and wants.

Willing and Able

Refers to a consumer's readiness and capacity to purchase goods or services at a given price level.