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:
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