Which statement is false?
A) To be a liability, the transaction or event obligating the entity must already have occurred.
B) The net worth of an entity is equal to its assets.
C) The specific identity of the "creditor" need not be known with certainty for a liability to exist.
D) Shareholders' equity may not exist apart from the corporate assets and liabilities.

Question

Quizplus · Accepted Answer

The net worth of an entity is calculated as the difference between its total assets and total liabilities, so it is not equal to its assets.

Which Statement Is False