Which of the Following Describes the Fundamental Identity Embodied in a Balance

question 76

Multiple Choice

Which of the following describes the fundamental identity embodied in a balance sheet?

• A)Net Worth plus Assets equal Liabilities
• B)Assets plus Liabilities equal Net Worth
• C)Assets equal Liabilities plus Net Worth
• D)Assets plus Reserves equal Net Worth

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Definitions:

Total Return

The overall financial gain or loss on an investment, including both capital appreciation/depreciation and income like dividends and interest over a given time period.

U.S. Dollars

The official currency of the United States, widely used as a global reserve currency and standard for international transactions.

International Stocks

Shares of companies based outside of an investor's home country, offering diversification benefits.

Portfolio Risk

The potential for loss due to the variability of returns from the various securities in a portfolio.