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Which of the below is one of the ways of defining surplus?
Answer & Solution
Correct Answer:
Option
D
Excess value of assets over liabilities is one of the ways of defining surplus. A surplus is an excess of total assets over total liabilities. The trade surplus is likely to persist, and reserve assets, after all, are generating interest incomes. A pension fund has a surplus when its assets exceed its obligations to current and future pensioners.
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