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Which One is False?

a.The 3 forms of Business Organizationare Sole Proprietorship, Partnership, and Corporation
b.The Contributed Capital Account will Include both Debit and Credit Entries
c.Revenues - Expenses = Net Income
d.CPA means Certified Public Accountant

1 Answer

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The false statement is that the Contributed Capital Account will include both debit and credit entries.

The false statement in the given options is b.The Contributed Capital Account will Include both Debit and Credit Entries. In accounting, contributed capital represents the funds that shareholders invest in a corporation. When individuals or entities contribute money or assets to a corporation, they receive shares of stock as evidence of their ownership. The contributed capital account is typically a credit account, meaning it is increased on the credit side and decreased on the debit side.

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