In Business and in Law,responsibility Is Called

question 11

Multiple Choice

In business and in law,responsibility is called

• A)assets.
• B)liability.
• C)equity.
• D)value system.

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Definitions:

Owners' Equity

The residual interest in the assets of a business after deducting its liabilities, representing the ownership's value in the firm.

Net Worth

The total assets of an individual or company minus its total liabilities, representing the financial value of the entity.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.