Question

Which of the following statements is incorrect? A. All debt are liabilities B. Noncontrolling interest is...

Which of the following statements is incorrect?

A.

All debt are liabilities
B.

Noncontrolling interest is part of total shareholders' equity
C.

The accounting equation is Assets = Liabilities + Owners' Equity
D.

All liabilities are debt
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Answer #1

Correct answer----------(D) All liabilities are debt

.

Noncontrolling interest is part of total shareholders' equity and is also reported as a such in a consolidated financial statements.

The accounting equation give n is correct.

All debts are liabilities but all liabilities are not debts.

Liabilities includes money owned , or performance obligation and advances related to those performance, etc.

Debt on the other hand only arise when a company takes money from another individual or another business or a bank.

Liabilities includes all debts. But debts are not liabilities such as an unearned revenue is a liability but not a debt.

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