Question

The assets, liabilities, and equity account of a business, which are interrelated and interact with each other, represent:______A. the benchmark of the businessB. the surplus value of the businessC. the financial structure of the businessD. the profit realization rate of the business

Answer 1

Answer:

The answer is C. the financial structure of the business

Explanation:

The financial structure of any business comprises assets, liabilities and equity.

Asset is a resource controlled by an entity and future economic benefits are expected to flow to the entity as a result of past event.

Liability is the present obligation arising from past action and if settled in the long run will result in am economic outflow of resources.

Equity is the residual interest in the business.