Which One of the Following Correctly Represents One of the Basic

question 118

Multiple Choice

Which one of the following correctly represents one of the basic financial statement models?

• A)Assets - Liabilities = Net Income
• B)Assets + Liabilities = Owners' Equity
• C)Revenues + Expenses = Net Income
• D)Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings

---

Definitions:

Liabilities

Financial obligations or debts that a business owes to others, including loans, accounts payable, and mortgages.

Intangible Assets

Non-physical assets that have a value, such as trademarks, patents, and copyrights.

Appraised Value

The estimated monetary value of a property as assessed by a professional appraiser based on its features and market conditions.

Consolidated Financial Statements

Financial reports that aggregate all financial data for a parent company and its subsidiaries, showing the financial results and position of the entire corporate group as a single entity.