A Statement of Assets and Liabilities of Any Business Entity

question 145

Multiple Choice

A statement of assets and liabilities of any business entity is called

• A) an income statement.
• B) a cash flow statement.
• C) a balance sheet.
• D) a statement of net worth.

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Definitions:

Retirement Portfolio

A collection of financial assets specifically designed and managed to support an individual's financial needs in retirement.

Sheltered Investment Income

Investment income that is protected from taxes by being placed in certain types of accounts or investments, like an IRA or a municipal bond.

Nominal Value

The face value of a financial instrument, such as a bond or stock, as stated by the issuer, without accounting for inflation or market value changes.

Unsheltered Investment Income

Income from investments that is not protected from taxes, meaning it is fully exposed to taxation.