What is the accounting equation?
A)Assets + Liabilities = Owners' Equity
B)Assets = Liabilities - Owners' Equity
C)Assets = Liabilities + Owners' Equity
D)Assets + Owners' Equity = Liabilities

Question

Quizplus · Accepted Answer

The accounting equation states that Assets are equal to Liabilities plus Owners' Equity. This means that the amount of resources a company controls (Assets) must be balanced by the amount of debt (Liabilities) and the amount of value contributed by the owners (Owners' Equity).

What Is the Accounting Equation