Which of the Following Statements Is False

question 170

Multiple Choice

Which of the following statements is false?

• A) Under GAAP, the statement of financial position is usually referred to as the statement of assets and equity.
• B) The FASB and IASB are working on a joint conceptual framework project.
• C) Under IFRS, companies sometimes net liabilities against assets to report "net assets".
• D) Assets equals liabilities plus stockholders' equity.

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Definitions:

Leverage

The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.

Hedge Fund Advantage

A benefit unique to hedge funds, often referring to their ability to employ diverse and complex strategies to achieve higher returns compared to traditional investment vehicles.

Divesting

The process of selling off subsidiary business interests or investments, typically to refocus core activities or raise capital.