Which of the Following Balance Sheet Equations Is INCORRECT

question 53

Multiple Choice

Which of the following balance sheet equations is INCORRECT?

• A) Assets - Liabilities = Shareholders' equity
• B) Assets = Liabilities + Shareholders' equity
• C) Assets - Current liabilities = Long-term liabilities
• D) Assets - Current liabilities = Long-term liabilities + Shareholders' equity

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Definitions:

Direct Labor-Hours

A measure of the total hours worked by employees who are directly involved in the production process of a company's products or services.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that do not vary with the level of production or sales, such as factory rent.

Fixed Manufacturing Overhead

Costs that do not change with the level of production, such as rent, salaries, and insurance for the manufacturing facilities.

Budget Variance

The difference between the budgeted or baseline amount of expense or revenue, and the actual amount.