What Is the Minimum Number of Accounts That Must Be

question 38

Multiple Choice

What is the minimum number of accounts that must be involved in any transaction?

• A) One.
• B) Two.
• C) Three.
• D) No minimum.

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Definitions:

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting the cost of capital from its operating profit.

Residual Income

The amount of net income generated in excess of the minimum rate of return expected by shareholders or creditors, often used as a performance measure for investment or business valuation.

Stern & Stewart

A global management consulting firm known for its development of the Economic Value Added (EVA) concept.

Common Size Balance Sheets

Balance sheets expressed as percentages, allowing for easier comparison across companies or periods by standardizing financial statements.