If, After All Calculations, Your Balance Sheet Does Not Balance

question 50

True/False

If, after all calculations, your balance sheet does not balance, you should adjust retained earnings accordingly.

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Definitions:

Funding Requirements

The total amount of capital needed to support a business's operations, projects, or to fulfill other financial commitments.

Actuarial Assumptions

The hypotheses about demographic, financial, and other variables that actuaries use to calculate the liabilities and expenses of insurance and pension plans.

GAAP Standards

Generally Accepted Accounting Principles; a set of rules and standards used for financial reporting and accounting in the United States.

Pension Asset

Refers to the resources set aside by a company in a pension fund to meet future pension liabilities to its employees.