Which of the following statements is true?
A) Assets must always equal liabilities plus stockholders' equity.
B) The total value of credits in all accounts must always equal the total value of debits in all accounts.
C) The net changes in assets must always equal the sum of the net changes in liabilities and stockholders' equity.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the statements are true and fundamental principles of accounting known as the accounting equation and double-entry accounting. A) The accounting equation states that assets (what a company owns) must equal the sum of liabilities (what a company owes) and stockholders' equity (the ownership interest in the company). B) Double-entry accounting requires that every transaction have equal and opposite debits and credits, ensuring that the total value of debits always equals the total value of credits. C) The statement is simply an extension of the accounting equation, indicating that any change in assets must be accompanied by corresponding changes in liabilities and equity.

Which of the Following Statements Is True