Which of These Is Not a Characteristic of Equity as Specified

question 12

Multiple Choice

Which of these is not a characteristic of equity as specified in the Conceptual Framework?

• A) It ranks after liabilities as a claim on assets.
• B) It must be controlled by the entity.
• C) It is diminished by unprofitable operations.
• D) It cannot be calculated independently of assets and liabilities.

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Definitions:

Existence

The state or fact of living or being present in a certain context or environment.

Survival

The ability of an entity, whether an organism or an organization, to continue to live or exist over time, often overcoming challenges and adapting to its environment.

Establishing Business

The process of starting a new company or venture, including planning, making key financial decisions, and completing legal activities required for operation.

Getting Customers

The process of attracting and acquiring individuals or businesses to purchase goods or services.