The Statement of Financial Position Is Based on Which Following

question 58

Multiple Choice

The Statement of Financial Position is based on which following equality:

• A) Fixed Assets = (Stockholder's equity + Current Assets)
• B) Assets = (Liabilities + Stockholder's equity)
• C) Assets = (Current Long Term Debt + Retained earnings)
• D) Fixed Asset = (Liabilities + Stockholder's equity)

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Definitions:

Ownership Percentage

The share of ownership interest a person or entity holds in a company, typically expressed as a percentage of the outstanding shares.

Acquisition Method

The method used in accounting for assets acquired and liabilities assumed in a business combination.

Consolidated Balance Sheet

A financial report that amalgamates the total assets, liabilities, and shareholders' equity of a parent organization and its subsidiaries.

Total Stockholders' Equity

The total net values attributed to the owners of a corporation, calculated as the difference between total assets and total liabilities.