Another Way to State the Accounting Equation Is

question 8

Multiple Choice

Another way to state the accounting equation is:

• A)Assets = Liabilities + Paid-in Capital - Common Stock.
• B)Assets + Liabilities = Stockholders' Equity.
• C)Assets = Liabilities + Paid-in Capital + Retained Earnings.
• D)Assets = Liabilities - Paid-in Capital - Dividends.

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Definitions:

Opportunities Forgone

The benefits, profit, or value of something that must be given up to acquire or achieve something else.

Opportunity Cost

The outcome of forgoing possible advantages from other alternatives by choosing one option.

Natural Resources

Resources present in nature, like minerals, forests, water, and fertile lands, that can be tapped for making money.

Absolute Advantage

The ability of a country or individual to produce a good or service more efficiently than other countries or individuals, using fewer resources.