Which of the Following Is True About the Fundamental Accounting

question 4

Multiple Choice

Which of the following is true about the fundamental accounting equation?

• A) It may be expressed as assets + liabilities = owners' equity.
• B) It is always expressed as assets = liabilities - owners' equity.
• C) It must remain in balance at all times.
• D) One side of the equation must equal zero.

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Definitions:

Molecules

The smallest unit of a chemical compound that can exist; made up of two or more atoms bonded together.

Molecular

Relating to or consisting of molecules, the smallest particle in a chemical element or compound that has the chemical properties of that element or compound.

Boiling Point

The temperature at which a liquid's vapor pressure equals the surrounding atmospheric pressure, causing it to turn into vapor.

Following

In the context of reactions, "following" generally refers to the sequence or order in which reactants undergo transformations in a chemical process.