The Accounting Equation Does Not Have to Be in Balance

question 66

True/False

The accounting equation does not have to be in balance after the recording of each transaction.

---

Definitions:

Dividend Yield

An indicator that illustrates the yearly dividend payout of a company against its stock price.

Gross Margin Ratio

A financial metric indicating the percentage of sales revenue remaining after deducting the cost of goods sold, serving as a measure of a company's production efficiency and pricing strategy.

Operating Activity

Activities that constitute the primary or core business functions, including sales and service provision, and their related expenses, generating most of the company's cash flows.

Cash Flows

Cash flows refer to the movement of money into and out of a business, indicative of its liquidity, operational efficiency, and financial health.