The Fundamental Accounting Equation Is as Follows: Assets = Liabilities

question 128

True/False

The fundamental accounting equation is as follows: Assets = Liabilities + Owners' equity.

Identify the four main types of inventory.

Understand the fundamental inventory questions and how typical inventory models address them.

Dispel common misconceptions about inventory management practices of major companies.

Understand the influence of quantity discounts on order size in inventory management.

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Definitions:

Operating Assets

Assets that are used by a company in its daily operations to generate revenue, excluding any investment or non-operational assets.

Net Operating Income

The profit derived from a company's regular business activities, excluding deductions of interest and taxes.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Residual Income

The net income an investment or business venture generates above the minimum rate of return.