Which of the Following Is the Correct Accounting Equation

question 74

Multiple Choice

Which of the following is the correct accounting equation?

• A) Assets + Liabilities = Equity
• B) Assets = Liabilities + Equity
• C) Assets + Revenues = Equity
• D) Assets + Revenues = Liabilities + Expenses

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Definitions:

Workforce Participation

The proportion of working-age individuals who are employed or actively seeking employment.

Rational Expectationist

An economist who believes that individuals make predictions about the future based on all available information, adjusting their behavior accordingly.

Supply-side

An economic theory that emphasizes the role of supply in fostering economic growth by reducing taxes and decreasing regulation, with the intent of increasing production.

Monetarism

A school of economics that places paramount importance on money as the key determinant of the level of prices, income, and employment.