Which of the Following Equations Correctly Describes the Relationships Among

question 40

Multiple Choice

Which of the following equations correctly describes the relationships among assets (A) , liabilities (L) , and net worth (NW) on a balance sheet?

• A)NW = A + L
• B)A = L + NW
• C)L = A + NW
• D)L + NW - A

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Definitions:

Financial Losses

Monetary losses that occur when the costs of conducting business exceed the income generated from business activities.

Closes

The final steps or actions taken in a sales process to conclude a deal or agreement effectively.

Manufacturer

A person or company that makes goods for sale, especially on a large scale or using industrial processes.

Fewer Than 500

A phrase typically used to describe the size of a business, indicating it employs less than 500 people, often classifying it as a small or medium enterprise (SME).