Which One of the Following Accounting Identities Is TRUE

question 155

Multiple Choice

Which one of the following accounting identities is TRUE?

• A) Disposable personal income plus indirect business taxes equals personal income.
• B) Disposable personal income plus non-income expense items equals personal income.
• C) Disposable personal income plus personal income taxes equals personal income.
• D) National income plus profit equals personal income.

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Definitions:

Horizontal

Refers to something that is arranged or lying flat, parallel to the plane of the horizon or perpendicular to the vertical.

Aboveground

Referring to the part of a plant or structure that is visible or exists above the surface of the soil or ground.

Endosperm

The nutritive tissue inside the seeds of most flowering plants, surrounding and nourishing the embryo.

Triploid

A term used to describe cell nuclei containing three sets of chromosomes, common in certain plant species and some animal species, leading to unique genetic traits.