Which of the Following Statements Is the Rationale for the Accounting

question 159

Multiple Choice

Which of the following statements is the rationale for the accounting equation?

• A) A firm is worth its equity minus its assets.
• B) Assets must equal earnings minus expenses.
• C) What the firm owns minus what it owes creditors equals what it is worth to its owners.
• D) The firm's profit is equal to its revenue minus its expenses.

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Definitions:

Balanced Scorecard

A strategic planning and management system used by organizations to communicate what they are trying to accomplish, align day-to-day work with strategy, prioritize projects, products, and services, and measure and monitor progress towards strategic targets.

Financial

Relating to money or how money is managed, including the processes of obtaining, using, and tracking funds.

Customer

An individual or entity that purchases goods or services from a business.

Self-assessment

The process by which individuals evaluate their own skills, performance, and qualities, often in a professional context.