The Balance Sheet Equation Is

question 97

Multiple Choice

The balance sheet equation is:

• A) Total Assets / Total Liabilities = Net Worth.
• B) Total Assets * Total Liabilities = Net Worth.
• C) Total Assets - Total Liabilities = Net Worth.
• D) Total Assets + Total Liabilities = Net Worth.
• E) Total Liabilities - Total Assets = Net Worth.

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Definitions:

Electricity Costs

The amount incurred by a business or individual for the use of electricity over a specific time period.

Kilowatt-hour

A unit of energy measurement equivalent to one kilowatt of power expended for one hour of time, commonly used for billing electricity usage.

Straight-line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, representing the asset’s decrease in value over time.

Factory Equipment

Fixed assets used in manufacturing processes, such as machinery and tools, necessary for producing goods.