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Which of the following is true regarding the accounting equation?
Select one:
a. The left side shows how a business invests its resources.
b. The left side provides insight into how leveraged a company is.
c. The right side shows the relative mix of revenues and expenses of a company.
d. The right side shows who makes investment decisions for a company.
Question 12
Which one of the following does not describe shareholders equity?
Select one:
a. The residual value of a business
b. The net worth of a business
c. Investments by owners and profits retained in a business to support future operations
d. Obligations that are owed by the company
Question 14
In order for the Balance Sheet to be in balance:
Select one:
a. Total assets must be greater than total liabilities
b. Total assets must be less than total liabilities
c. Total assets must equal total liabilities plus shareholders equity
d. Total liabilities must equal total shareholders equity
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