Which of the Following Best Describes Why the Left and Right

question 64

Multiple Choice

Which of the following best describes why the left and right sides of a balance sheet are equal?

• A) In a properly run business, the value of liabilities will not exceed the assets held by the company.
• B) By definition, the assets plus the liabilities will be the same as the stockholders' equity.
• C) The assets must equal liabilities plus stockholders' equity because stockholders' equity is the difference between the assets and the liabilities.
• D) By accounting convention, the assets of a company must be equal to the liabilities of that company.

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Definitions:

Organization's Benefits

The various perks and advantages offered by an organization to its members or employees, including health insurance, retirement plans, and paid leave.

Health Insurance

A form of insurance coverage that pays for an individual's or group's medical and surgical expenses or reimburses losses from illness or injury.

Paid Vacations

Employer-provided benefits that allow employees to take time off work with pay.

Flexible Sick-time

Policies that allow employees discretion in how they use their allotted time off for health-related issues.