The Correct Version of the Accounting Equation Is

question 30

Multiple Choice

The correct version of the accounting equation is:

• A) liabilities = assets + equity.
• B) equity = assets + liabilities.
• C) assets = equity + liabilities.
• D) none of the above.

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Definitions:

Predatory Pricing

A competitive strategy where a firm sets very low prices with the intent to drive competitors out of the market or hinder their ability to compete.

Showrooming

The practice of examining merchandise in a traditional brick and mortar retail store without purchasing it, then shopping online to find a better deal on the same item.

Price Discrimination

A pricing strategy where identical or similar products or services are sold at different prices to different customers.

Price Fixing

An illegal agreement between parties to set prices at a certain level, preventing fair competition and manipulating the market.