Which of the Following Is True

question 40

Multiple Choice

Which of the following is true?

• A) Assets + liabilities = owners' equity
• B) Credits = assets
• C) Debits = credits
• D) Assets = liabilities - owners' equity

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Definitions:

Permanent Accounting Record

A permanent accounting record is a documented history of a company's financial transactions that are kept for long-term reference and compliance purposes.

General Ledger

A comprehensive record of all financial transactions that occur within a company, serving as the primary source for preparing financial statements.

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the general ledger.

Income Statement Columns

The structure within an income statement that divides financial information into columns, typically including amounts for the current period, budgeted figures, and variances.