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:

Superior

Often used to describe something that is above average in quality or performance, or higher in position or rank.

Deindividuation

A psychological state characterized by reduced self-awareness and decreased personal responsibility in group settings.

Group

A collection of individuals who come together to achieve a common goal or share a common interest, often characterized by some level of cohesion and interaction.

Individuality

The quality or character of a particular person or thing that distinguishes them from others of the same kind, often expressed through unique behaviors, thoughts, and feelings.