Which of These Is Correct

question 27

Multiple Choice

Which of these is correct?

• A)Assets + liabilities = equity
• B)Liabilities = assets + equity
• C)Assets = liabilities + equity
• D)Assets = equity - liabilities

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Definitions:

Probability

The measure of the likelihood that an event will occur, quantified between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Expected Value

The expected value is a statistical concept that calculates the mean of all possible values of a random variable, weighted by their respective probabilities.

Stock Price

Stock price is the value of a company's shares traded on the stock market, representing investor's valuation of the company's future earnings potential.

Probability

An indicator of how probable an event is, represented as a numerical value ranging from 0 to 1.