Which of the following is not a correct statement about financial statements?
A “Assets = Liabilities + Equity” is called accounting equation.
B Assets are resources owned by a firm.
C Liabilities are claims owed to outsiders (creditors) against a firm’s assets.
D Equity is the claim a firm’s owners (stockholders) have against their company’s assets.
E Assets, liabilities, and equity are income statement line items.