Liabilities and stockholders' equity are:O increases in assets resulting from profitable operationsO economic resources used by a business entity.O sources of financing for economic resources.shown on the income statement in calculating net income.

Economic resources refers to resources which are used to produce goods and services So, Economic…

Answered: Liabilities and stockholders' equity…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 8GI

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Similar questions

Owners equity represents which of the following? A. the amount of funding the company has from issuing bonds B. the sum of the retained earnings and accounts receivable account balances C. the total of retained earnings plus paid-in capital D. the business owners/owners share of the company, also known as net worth or net assets
Working capital is an indication of the firms ________. A. asset utilization B. amount of noncurrent liabilities C. liquidity D. amount of noncurrent assets
The metrics based on financial numbers produced by the accounting system are ________. A. quantitative factors B. qualitative factors C. stakeholders D. stockholders
Retained earnings is accurately described by all except which of the following statements? A. Retained earnings is the primary component of a companys earned capital. B. Dividends declared are added to retained earnings. C. Net income is added to retained earnings. D. Net losses are accumulated in the retained earnings account.
Define the following. a. Retained earnings? b. Goodwill? c. Investing activities?
Financial Accounting ‏
Which of the following best represents operating income? Seleccione una: a. Income after financing activities b. Earnings before interest and taxes c. Income from discontinued operations d. Income from capital gains
For each item below, indicate to which category of elements of financial statements it belongs. a. Retained earnings. b. Sales. c. Additional paid-in capital. d. Inventory. e. Depreciation. f. Loss on sale of equipment. g. Interest payable. h. Dividends. i. Gain on sale of investment. j. Issuance of common stock.
Which one of these ratios measures the efficiency at which a firm employs its assets? a. Return on equity b. Equity multiplier O C. Total asset turnover O d. P/E ratio O e. Profit margin
It indicates the proportion of debt in relation to resources provided by the owners, a. Debt -to-equity ratio b. Debt ratio c. Equity ratio d. Operating profit margin
The......of a business is the amount of income A-Revenue B-venture C-assest D-fund
Assets = Liability+ Capital where 'assets' are resources of the business; 'liabilities' are external claims against these resources; ' capital' is an internal or residual claim against these resources. Discuss the accounting equation considering the statement provided.

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Liabilities and stockholders' equity are: O increases in assets resulting from profitable operations economic resources used by a business entity. O sources of financing for economic resources. O shown on the income statement in calculating net income.