Which of the Following Best Describes Why the Left and Right

question 65

Multiple Choice

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

• A)By definition, the assets plus the liabilities will be the same as the shareholders' equity.
• B)In a properly run business, the value of liabilities will not exceed the assets held by the company.
• C)The assets must equal liabilities plus shareholders' equity, because shareholders' 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.

---

Definitions:

Soft Drinks

Non-alcoholic beverages that are usually carbonated and flavored, such as soda or cola.

Dr. John Styth Pemberton

The pharmacist and Confederate States Army veteran who invented Coca-Cola in the late 19th century.

Coca Leaves

The leaves of the coca plant, traditionally used for their stimulant effects in South America, and known for their role in the production of cocaine.

Process

A series of actions or steps taken in order to achieve a particular outcome, often involving stages or phases.