Homework SourseQUESTION 7 Which of the following statements are true about
QUESTION 7
Which of the following statements are true about the fundamental formula (Assets = Liabilities + Owners\' Equity)? Select all that apply.
It holds true until the company is closed and its assets are liquidated.
Assets in a balance sheet are recorded at their market values.
Assets in a balance sheet are recorded at their book values (with the exception of assets with depreciations).
Depreciation is applied to assets whose economic life is intrinsically long.
| It holds true until the company is closed and its assets are liquidated. | ||
| Assets in a balance sheet are recorded at their market values. | ||
| Assets in a balance sheet are recorded at their book values (with the exception of assets with depreciations). | ||
| Depreciation is applied to assets whose economic life is intrinsically long. |
Solution
Which of the following statements are true about the fundamental formula (Assets = Liabilities + Owners\' Equity)
Answer:
It holds true until the company is closed and its assets are liquidated.
| Which of the following statements are true about the fundamental formula (Assets = Liabilities + Owners\' Equity) Answer: It holds true until the company is closed and its assets are liquidated. |
