Which of the following statements is FALSE?
A) Assets are economic resources that are expected to provide future benefits.
B) Liabilities are economic obligations or claims against the assets of an organization by nonowners.
C) Assets must always equal the sum of liabilities and owners' equity.
D) Owners' equity equals the sum of assets and liabilities.

Question

Quizplus · Accepted Answer

The statement "Owners' equity equals the sum of assets and liabilities" is false. Owners' equity is the residual interest in the assets of an organization after deducting liabilities. Therefore, the correct statement would be "Owners' equity equals the difference between assets and liabilities."

Which of the Following Statements Is FALSE