In a Balance Sheet, the Difference Between Assets and Liabilities

question 25

Multiple Choice

In a balance sheet, the difference between assets and liabilities is called ________.

• A) Owner's equity
• B) debt
• C) Cash flow
• D) Profit
• E) Income

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Definitions:

Void Contract

A contract that lacks legal validity and enforceability from the outset, meaning it has no legal effect and cannot be enforced by either party.

Infant

A very young child, especially one newly or recently born.

Illegal

Illegal refers to actions or activities that are prohibited by law or statute.

Enforceable

Refers to a rule, obligation, or agreement that can be legally imposed or carried out.