Which of the Following Is True About a Business' Assets

question 2

Multiple Choice

Which of the following is true about a business' assets?

• A)They are equal to liabilities minus shareholders' equity.
• B)They are the economic resources of the business.
• C)They are initially reported on the statement of financial position at current market value.
• D)They are reported on the income statement.

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Definitions:

Ideal Standards

Standards that assume peak efficiency at all times.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected (standard) quantity, multiplied by the standard cost of those materials.

National Distribution

The process of distributing products or goods across an entire country, often involving multiple transportation and logistics strategies.

Grams

A metric unit of mass equal to one thousandth of a kilogram, often used to measure small quantities of material.