Which One of the Following Represents the Expanded Basic Accounting

question 151

Multiple Choice

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

• A)Assets = Liabilities + Common Stock + Dividends - Revenue - Expenses
• B)Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues
• C)Assets - Liabilities - Dividends = Common Stock + Revenues - Expenses
• D)Assets = Revenues + Expenses - Liabilities

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Definitions:

Forward Market

A market in which participants agree to trade a financial instrument or physical commodity for future delivery at a specified price.

Absolute Purchasing Power Parity

A theory stating that identical goods and services in different countries should cost the same when priced in a common currency.

Standardized Good

a product that is produced to a set standard, making it interchangeable with similar products.

Economic Values

The worth of goods or services determined by the market, where price represents the quantity of resources people are willing to exchange for it.