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

Question

Quizplus · Accepted Answer

Assets = Liabilities + Stockholders' Equity.The accounting equation is a fundamental accounting principle that states that the total assets of a company must equal the sum of its liabilities and stockholders' equity. This equation is used to ensure that the company's financial statements are balanced and that the company's assets are properly accounted for.

The Accounting Equation May Be Expressed as