Which of the Following Are Classified as Equity Accounts on a Balance

question 47

Multiple Choice

Which of the following are classified as equity accounts on a balance sheet?I. goodwill
II. paid in capital
III. net income
IV. retained earnings

• A)IV only
• B)I and III only
• C)II and IV only
• D)I, II, and IV only
• E)II, III, and IV only

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Definitions:

Reduction

The act of making something smaller or less in amount, degree, or size.

Marginal Cost

The cost of producing one additional unit of a good or service.

Abating Emissions

The process of reducing the amount of pollutants released into the atmosphere.

Emissions

The act of releasing substances, especially gases or radiation, into the environment as a byproduct of activities like manufacturing or driving.