The Accounting Equation Can Be Stated as Which of the Following

question 64

Multiple Choice

The accounting equation can be stated as which of the following?

• A)Assets - liabilities = owners' equity
• B)Assets + liabilities = owners' equity
• C)Liabilities + assets = owners' equity
• D)Owners' equity + assets = liabilities
• E)Liabilities - owners' equity = assets

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Definitions:

Specific Performance

A legal remedy that compels a party to execute a contract according to the precise terms agreed upon, rather than awarding damages for breach.

Punitive Damages

Financial compensation awarded to a plaintiff in a lawsuit, intended to punish the defendant for particularly harmful behavior.

Novation

Novation is the legal process by which an existing contract is replaced with a new contract, involving the same or different parties, where the obligations of the original contract are extinguished and replaced by new obligations.

Exemption Clause

A contractual provision that seeks to limit or exclude one's liability in certain situations, often subject to legal scrutiny for fairness.