Which Equality Is the Basis for the Balance Sheet

question 1

Multiple Choice

Which equality is the basis for the balance sheet?

• A) Fixed Assets = Stockholder's Equity + Current Assets
• B) Assets = Liabilities + Stockholder's Equity
• C) Assets = Current Long-Term Debt + Retained Earnings
• D) Fixed Assets = Liabilities + Stockholder's Equity
• E) None of these.

---

Definitions:

Odd Number

An integer which is not divisible by two, exhibiting a remainder of one when divided by two.

Policymaking Decisions

Choices and judgments made by governing bodies or officials regarding the establishment of rules, laws, or regulations intended to manage public affairs.

Corporate Affairs

Activities related to the operation and management of a corporation, including its legal, financial, and communications strategies.

Prudent Business Judgment

Decision-making by business leaders that is cautious, reasonable, and in the best interest of the organization, based on available information.