Which of the Following Statements Is FALSE

question 122

Multiple Choice

Which of the following statements is FALSE?

• A)A transaction can increase the balance in one account and decrease the balance in another account.
• B)A transaction can increase the balance in two accounts.
• C)A transaction can increase the balance in two accounts and decrease the balance in one account.
• D)A transaction must increase and decrease the same number of accounts.

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Definitions:

Net Fair Value

The amount that an asset could be bought or sold for in a current transaction between willing parties, minus any selling costs.

Unrecorded Goodwill

Goodwill that has arisen through operations but has not been formalized in the financial statements because it has not been acquired through a business combination.

Business Combination

The process of merging two or more entities into one, typically to achieve operational synergies or market expansion.

Useful Life

The period over which an asset is expected to be usable by an entity for its intended purpose.