The Assets of a Company

question 112

Multiple Choice

The assets of a company:

• A) must equal the liabilities of the company.
• B) include property, plant, and equipment and common stock.
• C) represent economic resources that are expected to produce a future benefit.
• D) include merchandise inventory and accounts payable.

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Definitions:

Capital

Financial assets or their financial value, including funds in deposit accounts, as well as the machinery, buildings, or equipment used in producing goods and services.

Nondiversifiable Risk

A type of risk that cannot be eliminated through diversification and affects all investments across the market.

Weighted Average

A mean where each value in the data set is multiplied by an assigned weight before the final calculation is performed.

Expected Return

Expected return is the anticipated amount of profit or loss an investment is likely to generate over a specific period.