Asked by Tegan Hendrix on May 25, 2024
Verified
The residual interest in the resources of an entity that remains after deducting its debts to third parties defines
A) assets.
B) liabilities.
C) equity.
D) retained earnings.
Residual Interest
The remaining interest or value that an entity has in an asset after deducting any liabilities or obligations related to that asset.
Entity
In accounting and finance, an entity refers to any organization, company, or individual that has a separate legal existence and can engage in economic activities and transactions.
Third Parties
Individuals or entities that are involved in a transaction or agreement but are not one of the principal parties.
- Familiarize yourself with the parts of a business's balance sheet (assets, liabilities, equity) and their descriptions.
Verified Answer
Learning Objectives
- Familiarize yourself with the parts of a business's balance sheet (assets, liabilities, equity) and their descriptions.
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