Under Which of the Following Theories Would the Accounting Equation

question 48

Multiple Choice

Under which of the following theories would the accounting equation be Total Assets = Total Equities (including liabilities) ?

• A)Residual equity theory
• B)Proprietary theory
• C)Entity theory
• D)Commander theory

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Definitions:

SCF

Statement of Cash Flows, a financial report that details the inflows and outflows of cash for a business over a specified period.

Parameter

A characteristic or constant factor that can be measured and used to describe a system or set the conditions of an experiment.

Statistic

A numerical value that represents a summary measure of a sample, used to estimate parameters of the population.

Commuting Distance

The distance that an individual travels from their home to their place of work or study.