Which Statement Is Incorrect

question 118

Multiple Choice

Which statement is incorrect?

• A) A chart of accounts is a listing of accounts used by a business.
• B) New accounts can be added to the chart of accounts.
• C) Stockholders' Equity is an account that is included in the chart of accounts.
• D) Account titles for the chart of accounts are used in general journal entries.

Recognize explicit costs and their impact on a firm's financial statements.

Comprehend the relationship between economic profit, accounting profit, and normal profit.

Identify the components of total production costs from an economist's perspective.

Understand the difference between implicit costs and explicit costs.

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Definitions:

Implied Condition

A condition in a contract that is not explicitly stated but is necessary for the performance of the contract.

Written Contract

A legally binding agreement between two or more parties that is put in writing and signed by the parties involved.

Installments

Regular partial payments made over a period of time to settle a debt or purchase price, rather than paying the total amount at once.

Proceeds

The total amount of money or assets derived from a transaction or event, often used in the context of sales and financings.