The Balance Sheet Equation for Entity Theory Is "Total Assets

question 17

True/False

The balance sheet equation for entity theory is "Total Assets - Total Liabilities = Owners' Equities."

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Definitions:

Operating

Pertaining to the core business functions and activities of an organization that contribute to the production of goods or services.

General Principles

Broad and fundamental guidelines or rules that form the basis for a field of study or profession.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction, notably in the United States.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.