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:

Terrorist Activity

Violent acts intended to create fear, perpetrated for a religious, political, or ideological goal, often targeting civilians.

Political Risk

The risk of losing money due to changes in a country's political environment or government policies that would affect investments negatively.

Transaction Gains

Refers to the profits realized from the buying and selling of assets or securities within a specific timeframe.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the amount of income subject to tax.