The basic accounting equation is
A) Assets = Revenues - Expenses.
B) Assets = Liabilities - Owner's Equity.
C) Assets = Owner's Equity - Liabilities.
D) Assets = Liabilities + Owner's Equity.

Question

Quizplus · Accepted Answer

The basic accounting equation is Assets = Liabilities + Owner's Equity. This means that the total assets of a business must equal the total of its liabilities (what it owes to others) and owner's equity (what the owner has invested in the business).

The Basic Accounting Equation Is