The Description of the Relation Between a Company's Assets, Liabilities

question 237

Multiple Choice

The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

• A) Income statement equation.
• B) Accounting equation.
• C) Business equation.
• D) Return on equity ratio.
• E) Net income.

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Definitions:

Unilateral

Involving only one side or party, often referring to agreements or actions taken independently by one entity without the need for consent or participation of another.

Contract Law

A branch of legal studies focusing on the creation, interpretation, and enforcement of agreements between parties with mutual obligations.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, or artistic fields.

Unequivocal

Leaving no doubt; clear, unambiguous, and without any possibility of misunderstanding.