The Horizontal Bar in the Figure Will Remain Horizontal If

question 44

Multiple Choice

The horizontal bar in the figure will remain horizontal if

• A)L₁ = L₂ and R₁ = R₂
• B)L₁ = L₂ and M₁ = M₂
• C)R₁ = R₂ and M₁ = M₂
• D)L₁M₁ = L₂M₂
• E)R₁L₁ = R₂L₂

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Definitions:

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of the company’s profits and the right to vote on matters affecting the company.

Acquisition

The process of obtaining control of another company by purchase or exchange of stock.

Fair Values

The estimated market value of an asset or liability, based on current prices in an open and competitive market.

Credit Balance

A situation in accounting where the sum of credits in a ledger account exceeds the sum of debits. It often indicates an amount owed to the account holder.