Which One of the Following Represents the Expanded Basic Accounting

question 68

Multiple Choice

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

• A) Assets = Liabilities + Common Shares + Retained Earnings + Revenues - Expenses - Dividends Declared.
• B) Assets + Liabilities = Dividends Declared + Expenses + Common Shares + Revenues.
• C) Assets - Liabilities - Dividends Declared = Common Shares + Revenues - Expenses.
• D) Assets = Revenues + Expenses - Liabilities.

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Definitions:

Marginal Costs

The cost incurred by producing one additional unit of a product or service.

Market Price

The amount at which a good or service is currently sold in the market, determined by supply and demand.

Produce

To create, manufacture, or grow goods and services for consumption or sale.

Firm

A business or company engaged in commercial, professional, or industrial activities.