Identify which one of the following statements is false.
A)Owners' equity solely represents the profits made by an organization in the current period.
B)Assets are economic resources that are expected to benefit future cash inflows or reduce future cash outflows.
C)Liabilities are economic obligations or claims against the assets of an organization by outsiders.
D)Assets must always equal the sum of liabilities and owners' equity.

Question

Quizplus · Accepted Answer

Owners' equity represents the residual interest in the assets of an organization after deducting liabilities. It includes profits made in the current and previous periods, as well as contributions made by owners.

Identify Which One of the Following Statements Is False