The Basic Accounting Equation Cannot Be Restated as

question 172

Multiple Choice

The basic accounting equation cannot be restated as

• A) Assets - Liabilities = Equity.
• B) Assets - Equity = Liabilities.
• C) Equity + Liabilities = Assets.
• D) Assets + Liabilities = Equity.

---

Definitions:

Strong Form

In market efficiency theory, the strong form suggests that all information, both public and private, is reflected in stock prices.

Inside Information

Insider information refers to material information about a company that has not been made public and that could influence an investor's decision to buy or sell the stock.

Corporate Earnings

The profit a company generates during a specific period after accounting for all expenses, taxes, and costs, which can influence its stock price.

Dividend Announcement

A public statement by a company indicating its intention to distribute earnings to shareholders in the form of dividends.