Which of the Following Best Describes Why the Left and Right

question 36

Multiple Choice

Which of the following best describes why the left and right sides of a statement of financial position 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.
• E)Assets must always exceed liabilities or the company will be bankrupt.

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Definitions:

Congruent

Matching or in agreement; used to describe when two or more things are in harmony or are identical in shape and size.

Humanistic

Pertaining to a psychological perspective focusing on individual free will, self-fulfillment, and the concept of self-actualization.

Theoretical Approach

A method or strategy used in research and practice that is grounded in theory and guides the processes of inquiry and interpretation.

Carl Rogers

An influential American psychologist who founded client-centered therapy and emphasized the importance of self-actualization and unconditional positive regard.