Which one of the following statements is false?
A)The basic accounting equation does not subdivide liabilities into two categories: claims of creditors and claims of the Canada Revenue Agency.
B)The accounting equation can be expressed as: Assets - Shareholders' Equity = Liabilities.
C)The accounting equation can be expressed as: Assets + Liabilities = Shareholders' Equity.
D)If the assets owned by a business total $100,000 and liabilities total $52,000, shareholders' equity must total $48,000.

Question

Quizplus · Accepted Answer

The correct accounting equation is expressed as: Assets = Liabilities + Shareholders' Equity. Option C incorrectly rearranges the components of the equation, suggesting that Assets plus Liabilities equals Shareholders' Equity, which is not accurate.

Which One of the Following Statements Is False