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.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights.

Market Price

The current market price for the acquisition or disposal of a service or asset.

Average Sale Period

The average time it takes for a company to sell its inventory, a critical measure for assessing the efficiency of inventory management.

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders' equity at a specific point in time.