Solved

Which of the Following Is Correct with Respect to the Issue

Question 54

Multiple Choice

Which of the following is correct with respect to the issue of owners' equity?


A) Owners' equity is meaningful for investors,but not for lenders.
B) If a company's assets exceed its liabilities,owners' equity will be negative.
C) Owners' equity consists of two sources of capital: the amount the owners originally invested and the amount of government loans the company has received.
D) Even if a company operates profitably,its liabilities may increase faster than its assets.
E) The basic accounting equation can be rewritten as follows: owners' equity equals assets minus liabilities.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents