All of the Following Are Acceptable Ways of Stating the Accounting

question 67

Multiple Choice

All of the following are acceptable ways of stating the accounting equation except

• A) owners' equity = assets ― liabilities.
• B) assets = liabilities + owners' equity.
• C) owners' equity ― liabilities = assets.
• D) assets ― liabilities = owners' equity.
• E) assets = shareholders' equity + liabilities.

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Definitions:

Common Stock

Equity securities representing ownership in a company, entitling holders to vote and share in the company's profits.

Net Income

The financial term for the total earnings or profit of a company after all expenses and taxes have been subtracted from total revenue.

Investment Portfolio

A group of stocks and/or debt securities in different corporations held for investment purposes.

Consolidated Portfolio

A comprehensive account of the combined assets, liabilities, and investment holdings of a parent company and its subsidiaries.