For a Corporation, the Excess of the Assets Over the Liabilities

question 169

Multiple Choice

For a corporation, the excess of the assets over the liabilities is called:

• A) paid- in capital
• B) retained earnings
• C) common stock
• D) owners' equity

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Definitions:

Assigned

The allocation or designation of resources, responsibilities, or tasks to a specific account, project, or individual.

Unassigned

Refers to resources or tasks that have not been allocated or designated to a specific category, department, or individual.

Encumbrances Outstanding

Liens or claims against property or assets that are unresolved or have not been paid off, affecting an owner's ability to transfer a clear title.

Modified Accrual Basis

An accounting method that combines elements of the accrual basis and cash basis accounting, recognizing revenues when they are available and measurable, and expenses when incurred.