Which Is a True Statement Regarding the Accounting Equation

question 173

Multiple Choice

Which is a true statement regarding the accounting equation?

• A)The equation can be stated as assets minus liabilities equals equity.
• B)The equation consists of three parts: assets,liabilities,and net income.
• C)The equation is an optional tool for accountants to use.
• D)The equation does not need to balance during a specific period.

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Definitions:

Fluid Intelligence

As identified by Raymond Cattell, a type of innate intelligence.

Cattell's Idea

Refers to the psychological theories developed by Raymond Cattell, which include the concepts of fluid and crystallized intelligence as components of human cognitive ability.

Thurstone's Model

A theory of intelligence that proposes seven primary mental abilities as the basis of intelligence.

Primary Abilities

Primary abilities refer to fundamental cognitive skills in specific domains, such as verbal reasoning or spatial understanding, crucial for overall intellectual functioning.