Which of the Following Is True of Accounting Equation

question 6

Multiple Choice

Which of the following is true of accounting equation?

• A) It is used to place records into understandable categories that are useful for managing a business.
• B) It assumes that a successful business will stay in business and this enables long-range planning and strategy.
• C) It underlies the legal forms of establishing businesses,such as corporations,limited partnerships,and limited liability companies.
• D) It ensures that accounting information is useful to the firm's stakeholders.

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A foundational idea or principle underlying a field of knowledge.