The Balance Sheet Is Based on Which Following Equality

question 2

Multiple Choice

The balance sheet is based on which following equality:

• A) Fixed Assets (Stockholder's equity + Current Assets
• B) Assets (Liabilities + Stockholder's equity
• C) Assets (Current Long Term Debt + Retained earnings
• D) Fixed Asset (Liabilities + Stockholder's equity

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Definitions:

Original Cost

The initial cost of acquiring an asset or service, including all expenses related to the purchase.

Internal Control

Processes and procedures implemented by a company to safeguard its assets, enhance the reliability of its accounting records, promote efficient operations, and ensure compliance with laws and regulations.

Physical Count

A physical count involves manually counting the actual inventory to verify accuracy against inventory records, often used for audit purposes or to correct discrepancies.

Physical Count

The process of manually counting and verifying the quantities of inventory on hand at a specific point in time.