The Description of the Relation Between a Company's Assets, Liabilities

question 237

Multiple Choice

The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

• A) Income statement equation.
• B) Accounting equation.
• C) Business equation.
• D) Return on equity ratio.
• E) Net income.

Identify the purpose and functions of regulatory bodies and committees such as the National Association of Securities Dealers (NASD) and the Federal Open Markets Committee (FOMC).

Understand the impact of the Federal Reserve’s actions on money supply and interest rates.

Grasp the investment strategies of different types of financial institutions like insurance companies and pension funds.

Know the requirements for joining a credit union.

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Definitions:

Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross income.

Net Income

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