Which of the following statements is true?
A)Liabilities - Assets = Stockholders' Equity.
B)The total value of credits in all accounts must always equal the total value of debits in all accounts.
C)It's normal to have more decreases in an account than increases.
D)A decrease in contributed capital would be recorded with a credit.

Question

Quizplus · Accepted Answer

This statement is known as the accounting equation and is not always true. Liabilities and assets are both reported on the balance sheet and are not directly related to stockholders' equity. Option A is incorrect. Option C is incorrect because each transaction must have an equal amount of debits and credits. Option D is also incorrect, as a decrease in contributed capital would be recorded with a debit.

Which of the Following Statements Is True