A Weak Entity Is an Entity That Depends on Another

question 36

True/False

A weak entity is an entity that depends on another entity for its own existence.

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Definitions:

Total Liabilities

Comprises all the obligations a company owes, including loans, accounts payable, mortgages, deferred revenues, bond issues, warranties, and accrued expenses.

Total Equity

The total of all ownership interest in a company, calculated as total assets minus total liabilities.

Debt-Equity Ratio

An indicator of the financial distribution between shareholder equity and debt in asset financing.