Which of the Following Is the Reason That the Accounting

question 39

Multiple Choice

Which of the following is the reason that the accounting equation is true by definition?

• A) Liabilities are the source that funds the purchase of assets
• B) Assets are the source that funds the purchase of liabilities and owner's equity
• C) Liabilities and owner's equity are the sources that fund the purchase of assets
• D) None of these are true, the accounting equation is merely a coincidence

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Definitions:

Correlation

A statistical measure that describes the extent to which two variables change together, but does not imply causation.

Replication

The process of duplicating an experiment or study's procedure to verify its results and ensure its reliability and validity.

Laboratory Experiment

A research method in which variables are controlled and manipulated in a lab setting to observe their effect on other variables, allowing for high levels of control and precision.

Quantitative Research

A research method focused on obtaining data through measurable, numerical information and statistical analysis to understand patterns and relationships.