Which of the Following Statements Is Incorrect

question 5

Multiple Choice

Which of the following statements is incorrect?

• A) A balance sheet reports assets, liabilities and equity at a point in time.
• B) The exclusion of an asset from the business balance sheet because it is for private use is due to the going concern assumption.
• C) The average period between the purchase of merchandise and the conversion of this merchandise back into cash is the operating cycle.
• D) In order for a resource to be classified as an asset of the entity, the benefits must accrue to the entity.

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Definitions:

Independent Variables

Variables in an experiment or model that are manipulated or varied to observe their effects on dependent variables.

Regression Analysis

A statistical method used to examine the relationship between a dependent variable and one or more independent variables.

Independent Variable

A variable in an experiment or study that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Dependent Variable

A variable in an experiment or model that is expected to change in response to changes in the independent variable.