SIE Exam Question 193: Answer and Explanation

Question: 193

_________ represents the resources of a company.

• A. Assets
• B. Liabilities
• C. Equity
• D. Cash flow

Correct Answer: A

Explanation:

Assets represent the resources of a company. A liability is an obligation, financial or otherwise, that the company owes to a person or business entity. Equity represents the amount of stockholders' capital that has been invested in a firm. Cash flow is the amount of cash moving into and out of a company.