Which of the Following Statements Is False

question 27

Multiple Choice

Which of the following statements is false?

• A)Expense accounts have a debit balance.
• B)Revenue accounts have a credit balance.
• C)Gain accounts have a credit balance.
• D)Loss accounts have a credit balance.

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Definitions:

Voting Stock

Shares that give the holder the right to vote on company matters.

Book Value

The remaining value of a corporation's assets after subtracting its debts, as noted in the balance sheet.

Equity Method

An accounting technique used for recording investments in associate companies, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets.

Equipment Account

An account on the balance sheet that represents the current value of the equipment owned by a company after adjusting for depreciation and amortization.