Which of the following statements is incorrect?Question 5Select one:a.Equity is increased by profit and owner contributions.b.Equity can be sub-classified in the statement of financial position.c.Equity is decreased by an entity’s expenses.d.Equity is defined as ‘the residual interest in the assets of the entity after deducting all its expenses’.

Which of the following statements regarding equity is not true? A. It is increased by profit. B. It includes the retained earnings of the entity. C. It can be increased by additional contributions by the owners. D. It is defined independently of assets and liabilities.

Which of the following is false for owner’s equity?Select one:a.Equity is defined as the residual interest in the assets of the entity after deducting all its liabilities.b.Equity is not a claim against assets, it is what is left over after all liabilities are deducted from assets.c.Equity differs from liabilities in that liabilities are obligations which must be settled out of the assets of the entity, whilst equity is not an obligation which has to be settled.d.Equity is the same as a liability because it is an obligation which must be settled with the owner of the entity.

Which of the following statements concerning equity is incorrect?Group of answer choicesIn the Conceptual Framework equity cannot be defined independently of assets and liabilities.Equity represents lenders' claims on the net assets of the entity.Equity represents the owner's claim on the net assets of the entity.Two components of company equity are contributed capital and retained earnings.

Which of the following does not affect equity?  Sales.   Revaluation reserve. Correct Answer  Cash at bank. You Answered  Expenses.

What is equity decreased by? A. Liabilities B. Assets C. Income D. Expenses