Which One of the Following Represents the Expanded Basic Accounting

question 36

Multiple Choice

Which one of the following represents the expanded basic accounting equation?

• A)Assets = Liabilities + Common Shares + Retained Earnings + Revenues - Expenses - Dividends.
• B)Assets + Liabilities = Dividends + Expenses + Common Shares + Revenues.
• C)Assets - Liabilities - Dividends = Common Shares + Revenues - Expenses.
• D)Assets = Revenues + Expenses - Liabilities.

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate, reducing the asset's book value more quickly in the early years of its life.

Straight-Line Method

A method of calculating the depreciation of an asset where the asset's cost is evenly spread over its useful life.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since the asset was put into use.

Salvage Value

The calculated residual valuation of an asset at the end of its service life.