Which Is a TRUE Statement Regarding the Accounting Equation

question 151

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:

Adrenalectomy

A surgical procedure to remove one or both adrenal glands, which are located above the kidneys.

Adrenal Gland

A gland located above each kidney in the human body that produces hormones such as adrenaline and steroids like cortisol.

Sex Glands

Organs that produce sex hormones and gametes, such as the ovaries and testes.

Hypergonadism

A condition characterized by excessive activity of the gonads, leading to an overproduction of hormones such as testosterone or estrogen.