Which one of the following statements is not true?
A) If an entity can avoid transferring cash or other economic resources then there is no obligation and no liability exists.
B) Total assets = equity - total liabilities.
C) Borrowings can appear as both a current and a non-current liability in an entity's statement of financial position.
D) The International Accounting Standards Board defines equity as "the residual interest in the assets of the entity after deducting all its liabilities".

Question

Quizplus · Accepted Answer

The correct accounting equation is Total assets = total liabilities + equity, not Total assets = equity - total liabilities.

Which One of the Following Statements Is Not True