The Balance Sheet Is Set Up to Reflect the Fundamental

question 58

Multiple Choice

The balance sheet is set up to reflect the Fundamental Accounting Equation. This equation shows

• A) Assets = Liabilities + Owners' equity.
• B) Revenues - Expenses = Gross profit.
• C) Cash inflows = Cash outflows.
• D) Current assets + Current liabilities = Owners' equity.

---

Definitions:

Negative Thinking

A pattern of focusing on the worst aspects of a situation, often leading to pessimism and a lack of motivation.

Beck's Assumptions

Cognitive distortions identified in cognitive therapy, especially in the treatment of depression, which describe common negative thoughts about oneself, the world, and the future.

Cross-Cultural Study

Research designed to compare and contrast cultural norms, values, and practices across different societies or ethnic groups.

Psychodynamic Clinician

A mental health professional who uses psychodynamic theories and methods to understand and treat psychological disorders by exploring the unconscious mind and interpersonal relationships.