Question

Given below are two statements:
Statement (I): Trade tax is not included in direct taxes.
Statement (II): "Assets = Liabilities" is known as accounting equation.
In light of the above statements, choose the most appropriate answer from the options given below:

• A. Both Statement (I) and Statement (II) are true.
• B. Both Statement (I) and Statement (II) are false.
• C. Statement (I) is true but Statement (II) is false.
• D. Statement (I) is false but Statement (II) is true.

Hint:

Always remember the complete accounting equation:
\[ \text{Assets} = \text{Liabilities} + \text{Equity} \] Assets represent what the business owns, while Liabilities and Equity represent how those assets were financed.

Answer 1

The Correct Option is C