Which of the Following Best Describes Why the Left and Right

question 64

Multiple Choice

Which of the following best describes why the left and right sides of a balance sheet are equal?

• A) In a properly run business, the value of liabilities will not exceed the assets held by the company.
• B) By definition, the assets plus the liabilities will be the same as the stockholders' equity.
• C) The assets must equal liabilities plus stockholders' equity because stockholders' equity is the difference between the assets and the liabilities.
• D) By accounting convention, the assets of a company must be equal to the liabilities of that company.

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Definitions:

Specific Customer Needs

Particular requirements or desires of consumers that businesses aim to meet with their products or services.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, such as cost structure, product offerings, brand, and service.

Competitive Scope

The breadth and scale of competition a company faces, ranging from local to global markets and across various segments.

Cost Leadership

A business strategy aiming to achieve the lowest operational costs in an industry to offer products or services at a lower price than competitors.