Which of the Following Is Descriptive of the Proper Form

question 8

Multiple Choice

Which of the following is descriptive of the proper form of a balance sheet?

• A) The heading sets forth the period of time covered.
• B) Cash is always the first asset listed, followed by permanent assets (such as land and buildings), and finally by assets such as receivables and supplies.
• C) Liabilities are listed before owners' equity.
• D) A subtotal for total assets plus total liabilities is shown.

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Definitions:

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of products like tobacco, alcohol, and fuel.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing and able to sell.

Deadweight Loss

The reduction in economic efficiency that happens when a good or service doesn't reach or cannot reach equilibrium.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.