Which of the Following Statements Concerning Equity Is True

question 5

Multiple Choice

Which of the following statements concerning equity is true?

• 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.

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Definitions:

Superposition

A principle stating that in an undisturbed sequence of rocks, layers of rock were deposited in order from bottom to top according to their age.

Cross-Cutting

Relates to geological features that intersect or cut across other geological formations, indicating a relative age relationship.

Inclusions

Pieces of one rock unit that are contained within another, indicating that the included pieces are older than the host rock.

Sedimentary Rocks

Rocks formed by the accumulation and consolidation of sediment, often containing fossils of plants and animals that lived millions of years ago.