Which Statement CANNOT Be True

question 6

Multiple Choice

Which statement CANNOT be true?

• A) Joe is wealthy, even though he earns no income.
• B) Jane earns a very high salary but has negative net wealth.
• C) Wealth measures the flow of income.
• D) High-income earners can be in debt.

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Definitions:

Period End Assets

The total value of all assets owned by a company at the end of a financial reporting period.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated for reporting and taxation purposes.

Cost of Goods Sold

Costs directly related to creating products that a company offers for sale.