Which of the Following Is Correct with Respect to the Issue

question 90

Multiple Choice

Which of the following is correct with respect to the issue of owners' equity?

• A) It is the amount of cash listed on the balance sheet.
• B) It is the amount of money the owners would receive if they sold all of a company's assets and paid all of its liabilities.
• C) If a company's assets exceed its liabilities, owners' equity equals $10 000 for each dollar of assets.
• D) If a company's liabilities exceed its assets, owners' equity equals minus $10 000 for each dollar of liabilities.
• E) All of these are correct.

---

Definitions:

Apparent Authority

The impression given to third parties that an agent is authorized to act on behalf of a principal, even if such authority has not been formally granted.

Proper Notification

The act of informing someone through legally accepted or specified means.

Doctrine

A principle or body of principles presented for acceptance or belief, as by a religious, philosophical, scientific, or political group; policy.

Third-Party Estoppel

A legal principle that prevents a party from asserting or denying a fact due to another's act, when the third party has relied upon that act or representation.