Which of the Following Statements Is Incorrect About Financial Capital

question 12

Multiple Choice

Which of the following statements is incorrect about financial capital concept?

• A) The general price level accounting system follows financial capital concept.
• B) Capital is calculated as total assets less total liabilities.
• C) Profit is earned after an entity's capital is sufficient to maintain the operating capability of the entity's assets.
• D) Capital is determined as the purchasing power of equity recorded.

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