Which of the following statements is not true?
A) The profit of an entity is calculated as income less expenses.
B) A withdrawal of cash for private use by the owner is shown as a reduction of equity in the balance sheet.
C) Equity can be thought of as the owner's claim to the income of the entity after deducting all liabilities.
D) Income can be measured not only be cash, but by receipt of other assets.

Question

Quizplus · Accepted Answer

Equity is the owner's claim to the assets of the entity after deducting all liabilities, not just the income.

Which of the Following Statements Is Not True