The Accounting Equation Is Defined As

question 66

Multiple Choice

The accounting equation is defined as:

• A)Assets = Liabilities + Stockholders' Equity.
• B)Assets = Liabilities - Stockholders' Equity.
• C)Net Income = Revenues - Expenses.

---

Definitions:

Profit Center

A division or segment of a company that is responsible for generating its own revenue and profit.

Residual Income

The income that remains after all personal debts and expenses have been paid, or in business, after all capital costs are deducted from net revenues.

Internal Centralized Service Department

A department within an organization that provides essential services or support centrally to other departments, often aiming to increase efficiency and standardization.

Manufacturing Department

A specialized division within a company that is focused on the production of goods.