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.

---

Definitions:

Environmental Performance

The measure of how well an individual, company, or country is managing its impact on the natural environment.

Social Performance

An evaluation measure that assesses how well an organization responds to social expectations and impacts communities and society positively.

Political Performance

Refers to how well or poorly political entities, such as governments or parties, achieve their stated objectives and handle governance.

Internal Validation

The process within an organization to verify and ensure that all aspects of a product, service, or system meet requirements and specifications before it is finalized or implemented.