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

question 152

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

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Definitions:

Tickler File

A reminder system or method used for tracking deadlines and important dates, often organized by date.

Unpaid Vouchers

Open or outstanding vouchers representing liabilities for goods or services received but not yet paid for by the company.

Voucher Number

A unique identification code assigned to each transaction or invoice in an accounting system.

Vouchers Payable

An accounting term that refers to accounts payable obligations for which vouchers have been created but not yet paid.