Which of the Following Equations Is Correct

question 136

Multiple Choice

Which of the following equations is correct?

• A) Change in cash = Change in noncash assets
• B) Change in cash = Change in liabilities + Change in stockholders' equity
• C) Change in cash = Change in liabilities + Change in stockholders' equity - Change in noncash assets
• D) Change cash = Change in liabilities + Change in stockholders' equity + Change in noncash assets

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Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its business transactions.

Fair Value

The market value of an asset or liability based on current prices in an active market.

Exchange Rates

The exchange rate determining the value of one currency in relation to another.

Goodwill Impairment

The decrease in value of a company's goodwill, indicating that the value of acquired assets has fallen below their book value.