Which of the Following Is an Accurate Depiction of the Accounting

question 158

Multiple Choice

Which of the following is an accurate depiction of the accounting equation?

• A) Assets = Liabilities + Common Stock + Retained Earnings
• B) Assets = Liabilities + Common Stock − Expenses
• C) Assets = Liabilities + Retained Earnings − Dividends
• D) Assets = Liabilities + Common Stock + Dividends

---

Definitions:

Year 2

Typically refers to the second year of a specified period, often used in financial analysis to compare annual performance or growth.

Average Sale Period

The average time taken to sell a product or service, typically calculated over a specific time frame.

Inventory Turnover

A metric indicating the number of times a company has sold and replaced inventory over a given period; it measures the efficiency of inventory management.

Inventory Turnover

A proportion illustrating the rate at which a firm's inventory cycles through sales and replacement in a given period, reflecting on the proficiency of inventory control.