Which of the Following Are the Three Basic Elements of the Balance

question 15

Multiple Choice

Which of the following are the three basic elements of the balance sheet?

• A)assets,liabilities,and retained earnings.
• B)assets,liabilities,and contributed capital.
• C)assets,liabilities,and revenues.
• D)assets,liabilities,and stockholders' equity.

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Definitions:

Average Rate of Return Method

A technique used in capital budgeting to estimate the profitability of potential investments.

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Time Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Present Value Amount

The current value of a future sum of money or stream of cash flows, given a specified rate of return.