Accountıng I Deneme Sınavı Sorusu #1313545
Which of the following is not true for "basic accounting equation"?
Assets must always equal the sum of liabilities and owner’s equity |
The order and position of the assets, liabilities, and owner’s equity in the equation does not reflect a random situation |
The logic of equation is not related to the background of using debits and credits in recording process |
Assets are always showed on the left side of the equation |
Liabilities and owner’s equity are always showed on the right side of the equation |
In the basic accounting equation, assets must always equal the sum of liabilities and owner’s equity. The order and position of the assets, liabilities, and owner’s equity in the equation does not reflect a random situation. Assets are always showed on the left side of the equation while liabilities and owner’s equity are always showed on the right side of the equation. The logic of this positioning creates the background of using debits and credits in recording process. C is the right answer.
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