Which of the Following Is Not a Satisfactory Statement of the Accounting

question 175

Multiple Choice

Which of the following is not a satisfactory statement of the accounting equation?

• A) Assets = Liabilities + Stockholders' Equity
• B) Assets - Stockholders' Equity = Liabilities
• C) Assets = Liabilities - Stockholders' Equity
• D) Assets - Liabilities = Stockholders' Equity

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Definitions:

Life Estate

A legal right to use and derive benefit from property for the duration of one's life, after which control reverts to another party.

Fee Simple

A type of freehold ownership where the owner has the greatest possible rights over the land forever.

Prescriptive Right

A right acquired through long-term use, such as the right to cross someone else's land, established by consistent and uninterrupted use over a period prescribed by law.

Covenant

A formal, binding agreement or promise, often found in contracts and legal documents.