Identify the Account Below That Impacts the Equity of a Business

question 46

Multiple Choice

Identify the account below that impacts the Equity of a business:

• A) Accounts Payable
• B) Utilities Expense
• C) Cash
• D) Accounts Receivable
• E) Unearned Revenue

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Definitions:

Method

A systematic way of accomplishing something. In a financial context, this could refer to a specific approach or procedure adopted for accounting or analysis purposes.

Average Rate of Return Method

A method of evaluating capital investments by calculating the average annual profit expected from the investment and dividing it by the initial investment cost.

Present Value

The contemporary valuation of a future money sum or cash flow series, based on a predetermined return rate.

Time Value

The idea that having money now is more valuable than having the same sum in the future because of its ability to generate earnings.