Which One of the Following Could Represent the Expanded Basic

question 44

Multiple Choice

Which one of the following could represent the expanded basic accounting equation?

• A) Assets = Liabilities + Owner's Capital + Owner's Drawings - Revenue - Expenses.
• B) Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues.
• C) Assets - Liabilities - Owner's Drawings = Owner's Capital + Revenues - Expenses.
• D) Assets = Revenues + Expenses - Liabilities.

---

Definitions:

Natural Monopolies

Industries where a single firm can supply a product or service to an entire market at a lower cost than any potential competitor, often due to economies of scale.

Extensive Economies of Scale

Refers to reductions in per-unit cost as the size of a firm or its level of production increases.

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue that comes from selling an additional unit.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at various prices.