Home » Past Questions » Accounts » The correct expression of accounting equation is

The correct expression of accounting equation is


Question

The correct expression of accounting equation is

Options

A)
Assets = Liabilities + Equity
B)
Net assets = Liabilities + Equity
C)
Assets + Liabilities = Equity
D)
Assets = Equity - liabilities

The correct answer is A.

Explanation:

The fundamental accounting equation is Asset = Capital + Liabilities
Asset = Liabilities + Equity the total assets of the company is generated through liabilities to outsiders that the company is still enjoying in addition with the equity by the owners of the business

More Past Questions:


Dicussion (1)

  • The fundamental accounting equation is Asset = Capital + Liabilities
    Asset = Liabilities + Equity the total assets of the company is generated through liabilities to outsiders that the company is still enjoying in addition with the equity by the owners of the business