Worldatwork Exam T7 Topic 1 Question 59 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 59
Topic #: 1

Which of the following best defines the term ''equity''?

AThe residual interest in the assets of the entity after deducting all its liabilities

BA present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits

CDecreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants

DIncreases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants

Show Suggested Answer

Suggested Answer: A

by Donte at Oct 16, 2022, 06:44 PM

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