If Your ____,Your Net Worth on the Balance Sheet Would

question 82

Multiple Choice

If your ____,your net worth on the balance sheet would have increased from one period to the next.

• A) liabilities increased and assets remained constant
• B) liabilities increased and assets decreased
• C) assets increased and liabilities remain constant
• D) income increased
• E) none of these

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Definitions:

Franchise Revenue

Income generated from the operation of a franchised business model, typically including fees and royalties paid by franchisees.

Matching Principle

An accounting principle that dictates expenses should be matched with the revenues they help generate, within the same accounting period.

Franchise Arrangements

Agreements where one party (the franchisor) grants another party (the franchisee) the right to use its trademark or brand name and operate a business under its business model.

Exclusive Right

A legal provision granting someone the sole authority to undertake a particular activity or use a specific property.