Examlex
Which of the following reflects an understanding of the state articulated in the Cardinal Principles of the National Entity of Japan (Source 20.2) ?
Open Account
A credit arrangement where the buyer pays the seller for goods or services at a later time, without the need for a formal loan agreement.
Owner's Equity
The total value of assets owned by the proprietorship after all debts and liabilities have been settled; essentially the net worth of a company.
Liabilities
Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.
Assets
Assets are possessions or property that a company owns or controls, anticipated to yield benefits in the future.
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