The accounting equation may be expressed as
A)Assets = Shareholders' Equity - Liabilities.
B)Assets = Liabilities + Shareholders' Equity.
C)Assets + Liabilities = Shareholders' Equity.
D)Assets + Shareholders' Equity = Liabilities.

Question

Quizplus · Accepted Answer

The accounting equation is correctly expressed as Assets = Liabilities + Shareholders' Equity, which represents the fundamental relationship in accounting that the resources owned by a company (assets) are financed by debts (liabilities) and the owners' claims (shareholders' equity).

The Accounting Equation May Be Expressed as