The Statement Concerning Equity That Is True Is

question 17

Multiple Choice

The statement concerning equity that is true is:

• A)It is the owner's claim to the assets of the entity after deducting liabilities
• B)It is fixed at the amount initially contributed when the business was established
• C)It is decreased by profit
• D)Assets + liabilities = equity

---

Definitions:

Pension Plans

Financial programs established by employers to provide retirement income for employees, where benefits are determined by factors such as salary history and duration of employment.

Turnover Rates

The percentage of employees leaving a company over a specific period, indicative of workforce stability.

Defined Contribution Plans

Retirement savings plans where the amount contributed to the plan is defined, but the future benefit can vary based on investment performance.

Retirement Income Risk

The risk of having insufficient funds to cover expenses in retirement, considering various factors like longevity, inflation, and healthcare costs.