Which of the Following Is the Correct Version of the Accounting

question 58

Multiple Choice

Which of the following is the correct version of the accounting equation?

• A)Liabilities = assets + equity
• B)Equity = assets + liabilities
• C)Assets = equity + liabilities
• D)None of the above

---

Definitions:

Fixed-Rate Tax-Deferred

Describes investment accounts or financial products that accumulate earnings taxed at a later date instead of when they are earned, with a fixed interest rate.

Savings Plan

A program that allows individuals to allocate a portion of their income for long-term savings or investments.

Purchasing Power Risk

The risk that the value of money will decrease over time, eroding the real value of investments and returns.

Conservative Investment

An investment strategy that prioritizes the preservation of capital and a steady flow of income, typically involving lower-risk securities such as bonds or high-quality stocks.