The Common Characteristic of Both Assets and Liabilities Is That

question 26

Multiple Choice

The common characteristic of both assets and liabilities is that they both

• A) provide an economic resource.
• B) result from a past transaction or event.
• C) represent a present responsibility.
• D) represent contractual or other rights.

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Definitions:

Net Working Capital

A financial metric that represents the difference between a company's current assets and its current liabilities.

Total Assets Ratio

A financial metric that compares the total assets of a company to its sales or revenues, indicating how efficiently a company uses its assets.

Uses of Cash

The various ways in which a company or individual allocates cash resources, including operating expenses, investments, and financing activities.

Fixed Assets

Durable physical assets utilized in the running of a company, which aren't anticipated to be expended or turned into cash within one year.