Which of the Following Statements Regarding the Accounting Equation Is

question 117

Multiple Choice

Which of the following statements regarding the accounting equation is incorrect?

• A) The equation is the basic tool of accounting.
• B) The equation consists of three categories: assets, liabilities, and equity.
• C) Each category of the accounting equation contains accounts.
• D) The equation can be stated as assets plus liabilities equals equity.

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Definitions:

Clubbing

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