Regarding the Accounting Equation,which of the Following Is a Correct

question 192

Multiple Choice

Regarding the accounting equation,which of the following is a correct statement?

• A) The accounting equation is made up of three parts.
• B) The accounting equation is the basic tool of accounting.
• C) Assets - Liabilities = Equity.
• D) All of the statements are correct.

---

Definitions:

Purchasing Agent

An individual responsible for buying goods and services for a company, ensuring the right materials are acquired at the best prices.

Lower Quality

Lower quality typically refers to products or assets that do not meet certain standards or expectations in terms of performance, durability, or reliability.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

SQ × AP

The standard quantity times actual price formula, used in cost accounting to calculate the variance between the actual cost and the standard cost of raw materials.