Chapter 1, Problem 12PSA

Summary Introduction

Concept Introduction:

Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.

While investing in the other company investor must get through about the risk presents in those companies. Government bonds are less risky while equity market is high risky.

To Identify:

Identify which has higher Risk.