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

Understand the fundamental principles and assumptions underpinning financial accounting.

Distinguish between the roles and responsibilities of internal and external users of financial information.

Identify the main areas and opportunities within the field of accounting.

Recognize the ethical considerations and challenges in accounting.

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